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Services activity slows in December

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Services activity slows in December

Further signs of a struggling economy.

Economic activity in the services sector grew in December for the 71st consecutive month, but the rate of growth cooled slightly, according to the latest survey by the Institute for Supply Chain Management.

The NMI registered 55.3% in December, 0.6 percentage point lower than the November reading of 55.9%.  The Non-Manufacturing Business Activity Index increased to 58.7%, which is 0.5 percentage point higher than the May reading of 58.2%, reflecting growth for the 77th consecutive month at a slightly faster rate.

The New Orders Index registered 58.2%, 0.7 percentage point higher than the reading of 57.5% registered in November.

The Employment Index increased 0.7 percentage point to 55.7% from the November reading of 55.0% and indicates growth for the 22nd consecutive month and at a faster rate.

The Prices Index decreased 0.6 percentage point from November to 49.7%, indicating prices decreased for in December for the third time in four months.

Anthony Nieves, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee, said that “According to the NMI, 11 non-manufacturing industries reported growth in December. Faster deliveries in December contributed to the overall slight slowing in the rate of growth according to the NMI® composite index. All of the other component indexes increased in the month of December. The majority of respondents’ comments remain positive about business conditions and the overall economy."

 

 

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