by Calculated Risk on 10/05/2020 10:07:00 AM

The September ISM Services index was at 57.8%, up from 56.9% last month. The employment index increased to 51.8%, from 47.9%. Note: Above 50 indicates expansion, below 50 contraction.

From the Institute for Supply Management: Services PMI™ at 57.8%; September 2020 Services ISM® Report On Business®

Business Activity Index at 63.0%; New Orders Index at 61.5%; Employment Index at 51.8%; Supplier Deliveries Index at 54.9%

Economic activity in the services sector grew in September for the fourth month in a row, say the nation's purchasing and supply executives in the latest Services ISM® Report On Business®.

The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management® (ISM®) Services Business Survey Committee: "The Services PMI™ registered 57.8 percent, 0.9 percentage point higher than the August reading of 56.9 percent. This reading represents growth in the services sector for the fourth straight month and the 126th time in the last 128 months, except for April's and May's contraction.

"The Supplier Deliveries Index registered 54.9 percent, down 5.6 percentage points from August's reading of 60.5 percent. (Supplier Deliveries is the only ISM® Report On Business® index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.)
emphasis added

This was above the consensus forecast, and the employment index was above 50 following six consecutive months of contraction.