This months report saw substantial growth in Business Activities, New Orders, and Backlog. Consistently with the recent past, Employment and Inventories were among the weakest. With lean inventories and higher productivity, corporate profits should be soaring. Companies will soon be forced to add employees as the backlog mounts and inventories must be replenished.
- "The NMI (Non-Manufacturing Index) registered 50.9 percent in September, 2.5 percentage points higher than the 48.4 percent registered in August, indicating growth in the non-manufacturing sector after 11 consecutive months of contraction. The Non-Manufacturing Business Activity Index increased 3.8 percentage points to 55.1 percent. This is the second consecutive month this index has reflected growth since September 2008. The New Orders Index increased 4.3 percentage points to 54.2 percent, and the Employment Index increased 0.8 percentage point to 44.3 percent. The Prices Index decreased 14.3 percentage points to 48.8 percent in September, indicating a significant reversal and decrease in prices paid from August. According to the NMI, five non-manufacturing industries reported growth in September. Even with the overall month-over-month growth reflected in the report this month, respondents' comments vary by industry and remain mixed about business conditions and the overall economy.
|Sep 2009||50.9||Mar 2009||40.8|
|Aug 2009||48.4||Feb 2009||41.6|
|Jul 2009||46.4||Jan 2009||42.9|
|Jun 2009||47.0||Dec 2008||40.1|
|May 2009||44.0||Nov 2008||37.4|
|Apr 2009||43.7||Oct 2008||44.6|
|Average for 12 months — 44.0|
High — 50.9
Low — 37.4