US ISM Non-Manufacturing Composite dropped to 56.7 in January, down from 57.6 and missed expectation of 57.0. Business Activity Index dropped -1.5 to 59.7. New Orders dropped -5 to 57.7. Employment Index rose 1.2 to 57.8. 11 non-manufacturing industries reported growth.
ISM noted that “The non-manufacturing sector’s growth rate cooled off in January. Respondents are concerned about the impacts of the government shutdown but remain mostly optimistic about overall business conditions.”
Some quotes from respondents:
- “Business has slowed well below expectations as our customers deal with the effects of economic situations exacerbated by the government shutdown.” (Construction)
- “Apprehension regarding overall economic conditions due to uncertainly of the partial government shutdown, its effect on business climate and lack of national strategic direction. Economic activity remains strong locally; however, there is concern that this may change quickly due to uncertainty and reports of slowing economic indicators.” (Public Administration)
- “Things are steady. We’re trying to mitigate any impact of the tariffs.” (Retail Trade)
- “The shutdown and potential delay in tax refunds will hurt our business.” (Wholesale Trade)
