ISM Services PMI Expands for 13th Straight Month

The Institute of Supply Management (ISM) has released its January services purchasing managers' index (PMI). The headline composite index is at 53.4, surpassing the 52.0 forecast. The latest reading marks the 13th straight month the index has been expansion territory.

Here is an excerpt from the report summary:

Nieves continues, “The overall growth rate increase in January is attributable to faster growth of the New Orders, Employment, and Supplier Deliveries indexes. The majority of respondents indicate that business is steady. They are optimistic about the economy due to the potential impact of interest rate cuts; however, they are cautious due to inflation, associated cost pressures and ongoing geopolitical conflicts.” [Source]

Unlike its much older kin, the ISM manufacturing series, there is relatively little history for ISM's non-manufacturing data, especially for the headline composite Index, which dates from 2008. The chart below shows the non-manufacturing composite.

ISM Services PMI