Another view...
...Business Activity Index at 60.4%; New Orders Index at 60.4%; Employment Index at 50%; Supplier Deliveries Index at 50%
Economic activity in the services sector grew in January after contracting in December following 30 consecutive months of growth, with the Services PMI registering 55.2 percent, say the nation's purchasing and supply executives in the latest Services ISM Report On Business.
The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management (ISM) Services Business Survey Committee: "In January, the Services PMI registered 55.2 percent, 6 percentage points higher than December's seasonally adjusted reading of 49.2 percent. The composite index grew in January after contracting in December for the first time since May 2020, when it registered 45.4 percent (seasonally adjusted). The Business Activity Index registered 60.4 percent, a 6.9-percentage point increase compared to the seasonally adjusted reading of 53.5 percent in December. The New Orders Index grew in January after contracting in December for the first time since May 2020; the figure of 60.4 percent is 15.2 percentage points higher than the seasonally adjusted December reading of 45.2 percent.
"The Supplier Deliveries registered 50 percent in January, indicating unchanged performance. The index registered 1.5 percentage points higher than the 48.5 percent reported in December. (Supplier Deliveries is the only ISM Report On Business index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.)
"The Prices Index was down 0.3 percentage point in January, to 67.8 percent. The Inventories Index contracted for the eighth consecutive month; the reading of 49.2 percent is up 4.1 percentage points from December's figure of 45.1 percent. The Inventory Sentiment Index (55.8 percent, down 0.1 percentage point from December's reading of 55.9 percent) expanded for the second consecutive month after four straight months in contraction.
"Ten industries reported growth in January, according to the Services PMI, which was in expansion territory after a single month of contraction and the prior 30-month period of growth. The composite index has indicated expansion for all but three of the previous 155 months."...
The 10 services industries reporting growth in January -- listed in order -- are: Agriculture, Forestry, Fishing & Hunting; Utilities; Other Services; Management of Companies & Support Services; Public Administration; Educational Services; Accommodation & Food Services; Real Estate, Rental & Leasing; Health Care & Social Assistance; and Professional, Scientific & Technical Services. The eight industries reporting a decrease in the month of January " listed in order " are: Transportation & Warehousing; Retail Trade; Arts, Entertainment & Recreation; Mining; Construction; Information; Finance & Insurance; and Wholesale Trade....
