The Institute for Supply Management (ISM) has released its Non-Manufacturing Index for September with a reading of 58.6%. The Bloomberg consensus was close enough at 58.8%, but note that this was down a full percentage point from the 59.6% reading of August. Another consideration is that this was coming off a post-recovery high for the non-manufacturing segment.

Inside this ISM report was the Business Activity Index at 62.9% (down 2.1 points), followed by the New Orders Index at 61% (down 2.8 points) and the Employment Index at 58.5% (up 1.4 points). September now represents the 56th consecutive month of growth in the non-manufacturing segment.

Friday’s big number was the unemployment and payrolls report. Stocks were up big, with the S&P 500 up almost 19 points at 1,965 and the Dow Jones Industrial Average up 156 points at 16,957.

The ISM commentary said:

Respondents’ comments indicate that business seems to be leveling off and there is a slight slowing in the momentum of the past few months of strong growth. They continue to remain optimistic about business conditions and the overall direction of the economy.

Other key components and comments were as follows:

• The Prices Index decreased 2.5 percentage points from the August reading of 57.7% to 55.2%.
• Twelve non-manufacturing industries reported growth in September.
• Supplier Deliveries were down 0.5 points at 52.0%.
• Inventories were up a point to 52.0%.
• Prices were down a sharp 2.5 points to 55.2%.
• Backlog of Orders was down by 2.5 points to 52.0%.
• New Export Orders were up a sharp five points to 57.5%.
• Imports were up 1.5 points to 52.5%.
• Inventory Sentiment was up five points to 60.0% and was called too high on a faster rate of change.

ALSO READ: ISM Shows Slower Growth in Manufacturing in September

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