ISM Non-manufacturing Business report shows contraction, renews recession fears.

February 5, 2008 - Forex Economic News

U.S. non-manufacturing business activity contracted in January according to a report released today by the Institute for Supply Management renewing fears of a possible recession. The Non-manufacturing Index(NMI) showed a score of 44.6 percent in January. The NMI equally weights the index scores of business activity, new orders, supplier deliveries and employment. A score below 50 is considered contracting or declining. The business activity index score plunged to 41.9 percent in January. This was down from a 54.4 percent score in December and a contracting score for the first time in 58 months. New orders dropped to 43.5 percent down from 53.9 percent in December and the lowest level since October 2001. The Employment Index fell to 43.9 percent in January from 51.8 percent in December and this was the lowest level since February 2002. Supplier deliveries scored 49.0 percent down from 52.5 percent in December. The unexpectedly steep drop in service sector scores added to slowing economic growth and a housing market downturn have renewed fears of a possible U.S. economic recession.

Tags: business activity, ISM Report on Business, NMI index

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