The non-manufacturing sector in the US took another big hit in November, after a steep drop-off the previous month, according to the Institute of Supply Management’s non-manufacturing index. The prevailing credit crisis, as well as the continuing housing contraction, has finally reached all facets of the economy, as the services sector is now feeling a lot of pain. The NMI came in at a record low of 37.3%, deep in recessionary levels, down from 44.4% in October. Economists had forecast a number at 42.7%. Readings above 50% indicate growth, and anything below, contraction.
Last 11 Months
|Nov 2008||37.3||May 2008||51.7|
|Oct 2008||44.4||Apr 2008||52.0|
|Sep 2008||50.2||Mar 2008||49.6|
|Aug 2008||50.6||Feb 2008||49.3|
|Jul 2008||49.5||Jan 2008||44.6|
The Business Activity Index also felt the pain. The index came in at 33%, down from 44.2%, and also a record low. The new-orders index plunged to 35.4% from 44.0%, and the employment index fell to 31.3% from 41.5%. The prices paid index declined to 36.6% from 53.4%, a dramatic reversal in prices in a matter of only a few months. In September, that number stood at 70%.
Only one industry reported growth in November- Health Care & Social Assistance.
Contraction was reported in 17 industry segments- Transportation & Warehousing; Arts, Entertainment & Recreation; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Finance & Insurance; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Public Administration; Educational Services; Management of Companies & Support Services; Mining; Wholesale Trade; Utilities; Other Services*; Retail Trade; Construction; and Information.
*Other Services include: Equipment & Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning & Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services.