Economy Watch: Non-Manufacturing Sector Still Growing Nicely
- Dec 06, 2016
While the incoming administration has discussed its plans to keep manufacturing jobs in the country, the bulk of U.S. economic activity seems to remain in the non-manufacturing sector. There has been some good news for the sector as of late, which in turn bodes well for office and retail landlords with space to lease.
The Institute for Supply Management’s November 2016 report on the non-manufacturing sector, which was released on Monday, found that the sector experienced its highest growth since October 2015. The organization’s Non-Manufacturing Index came in at 57.2 percent in November, 2.4 percentage points higher than in October. That represents the 82nd consecutive month of economic growth in the sector.
The Non-Manufacturing Business Activity Index increased to 61.7 percent, or 4 percentage points higher than the October reading. The Employment Index increased 5.1 percentage points in November to 58.2 percent, compared with the October reading of 53.1 percent.
On the other hand, the New Orders Index was 57 percent, or 0.7 percentage points lower than the reading in October. The Prices Index decreased 0.3 percentage points from the October reading of 56.6 percent, meaning that prices increased in November for the eighth consecutive month, albeit at a slightly slower rate. According to Anthony Nieves, chair of the Institute for Supply Management, the majority of respondents’ comments to the survey were positive about business conditions and the direction of the overall economy.
Image via Institute for Supply Management website