ISM Non Manufacturing New Orders Dropped In October, But Still in Growth Territory and Better Than 2011

ISM Non Manufacturing (Services) New Orders Index, not seasonally adjusted fell by 2.8 points in October to a reading of 56.1. Readings above 50 indicate growth.   The monthly decline of -2.8 in October was better than last year’s drop of -3.4 for the corresponding period. It left the index 2.2 points above the year ago figure. October does not exhibit any seasonality. Over the prior 10 years, there have been both gains and declines for the month. This month’s reading was well within the usual range of change.  This reading compares with a gain of 0.9 points in the  New Manufacturing Orders Index. Neither index shows any sign of any weakening in the economy or the stock market.


ISM Non Manufacturing New Orders Index Chart- Click to enlarge

For more charts and discussion on this topic visit  the permanent ISM New Orders and Factory Orders page from which this report is excerpted. That page is updated whenever new data becomes available. You can bookmark it for future reference. 

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See also Why Seasonal Adjustment Sucks

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also provide analysis and charts for David Stockman's Contra Corner which I developed for Mr. Stockman. I’ve had a wide variety of finance related jobs in the past 44 years, including a stint on Wall Street in both analytical and sales capacities. Prior to starting the Wall Street Examiner I worked as a commercial real estate appraiser in Florida for 15 years. I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. My perspective is not of the Ivory Tower. It is from having my boots on the ground and in the trenches of the industries that I analyze and write about today. 

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