Services sector expands in September

Posted Oct 5th 2009 4:20PM by Connie Madon
Filed under: Good news, Products and Services, Industry, Economic Data

We have good news to report. The Institute for Supply Management reported that the services sector index rose to 50.9 in September from a reading of 48.4 in August. A reading above 50 indicates expansion.

The services sector accounts for a majority of economic activity.

The business activity index also rose to 55.5 in September from 51.3 in August. Both readings indicated an expansion of business activity.

The no- manufacturing index was both weak and stronger. On the weak side, the hiring index stood at 44.3 up slightly in September from 43.5 in August. However, new orders rose to 54.2 in September from 49.9 in August.

The inflation index fluctuated a good deal. It was down to 49.8 in September from 63.1 in August.

What can we glean from all of this? The services sector is at the break even point to 50.9 There is some improvement but nothing to write home about. Nevertheless, it is a positive indicator as is the business activity index.

As a result of these numbers, do you expect to see an uptick in hiring in this sector?

Would you buy stocks in this sector?

Tags: service sector index rises, ServiceSectorIndexRises