Non-Manufacturing Activity Gains in October
NEW YORK (
) -- Economic activity in the non manufacturing sector expanded more than expected in October, according to the latest survey by the Institute for Supply Management.
The Non-manufacturing Index registered 54.3% in October, a rise from 53.2% in September and better than the 53.4% economists were expecting according to consensus estimates from
Briefing.com
.
The Business Activity Index rose at a faster than expected pace in October, rising 5.6 percentage points to 58.4%. New orders increased 1.8 percentage points to 56.7% and the Employment Index increased 0.7 percentage point to 50.9%, indicating growth in employment for the second consecutive month.
ISM's Non-Manufacturing Backlog of Orders Index grew in October after one month of contraction. The index registered 52%, 4 percentage points higher than the 48% reported in September. A healthy order backlog is necessary to sustain business activity which would otherwise have to rely solely on new orders which can be more volatile.
Separately, the Commerce Department reported a 2.1% increase in factory orders in September, after declining 0.5% in the previous month. The report was better than expected, with consensus projecting a 1.7% rise.
-- Written by Shanthi Venkataraman in New York
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