ISM Business Activity Index for Services Expands for 13th Staight Month to Highest Level Since 2005

“ISM’s Non-Manufacturing Business Activity Index in December registered 63.5 percent, an increase of 6.5 percentage points when compared to the 57 percent registered in November (see graph above). Fourteen industries reported increased business activity, and two industries reported decreased activity for the month of December. Two industries reported no change from November. Comments from respondents include: “Consumer optimism increasing” and “More end-of-year budget releases.”

The industries reporting growth of business activity in December — listed in order — are: Real Estate, Rental & Leasing; Retail Trade; Information; Professional, Scientific & Technical Services; Accommodation & Food Services; Mining; Arts, Entertainment & Recreation; Transportation & Warehousing; Management of Companies & Support Services; Utilities; Construction; Finance & Insurance; Health Care & Social Assistance; and Wholesale Trade. The industries reporting decreased business activity in December are: Public Administration and Educational Services.”

MP: The 63.5 percent reading for the ISM Non-Manufacturing Business Activity Index in December was the highest monthly level since August 2005, more than five years ago.

About Mark J. Perry 262 Articles

Affiliation: University of Michigan

Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.

He holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University in Washington, D.C. and an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota.

Since 1997, Professor Perry has been a member of the Board of Scholars for the Mackinac Center for Public Policy, a nonpartisan research and public policy institute in Michigan.

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