By Kathleen Madigan
U.S. non-manufacturers report activity held steady at a solid
pace in early 2015 and input costs fell further, according to data
released Wednesday by the Institute for Supply Management.
The ISM's non-manufacturing purchasing managers index stood at
56.7 in January, little changed from 56.5 in December. Forecasters
surveyed by The Wall Street Journal had projected last month's PMI
to moderate to 56.1.
The ISM said comments from its members are "mostly positive
and/or reflect stability about business conditions."
Earlier Wednesday, data provider Markit said its own
service-sector composite PMI rebounded to 54.2 in January from a
10-month low of 53.3 in December. However, Markit said its new work
index slowed to the weakest pace since the survey began in October
2009. As with the ISM, Markit readings above 50 indicate activity
is expanding.
In the ISM report, the indexes show activity among
non-manufacturers picked up last month.
The ISM's new orders index rose to 59.5 from 59.2 in December.
The ISM business activity/production index jumped to 61.5 from
58.6.
The ISM employment index, however, slowed to 51.6 in January
from 55.7. Earlier Wednesday, the ADP jobs report said private
service providers added 183,000 new jobs in January.
Falling oil prices continue to hold down cost pressures. The
price index dropped to 45.5 in January from 49.8 in December which
was the first decrease in input prices in 62 months.
The ISM non-manufacturing report is comprised mainly of comments
from service-sector companies that make up the bulk of the U.S.
economy, but it also includes construction and public
administration.
Write to Kathleen Madigan at kathleen.madigan@wsj.com
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