ISM survey of service sector shows small improvement

The Institute for Supply Management reported that its ISM Non-Manufacturing Index rose from 53.2 in September to 54.3 in October, suggesting that the broad-based service sector continues to expand at a modest pace.

A reading of 50 marks the line between expansion and contraction.



The latest survey did reveal that new orders increases, signaling further gains in the months to come. And employment inched ahead. Unlike manufacturing, however, which has been the bright spot in the fragile recovery, the service sector, which makes up the lion’s share of economic activity, has struggled.

Without a more robust recovery in services, any rise in jobs is likely to be limited, and most data, including today’s report, are signaling slow and steady gains.