The 10 industries reporting growth of new orders in October -- listed in order -- are: Other Services; Transportation & Warehousing; Information; Professional, Scientific & Technical Services; Management of Companies & Support Services; Utilities; Finance & Insurance; Wholesale Trade; Construction; and Health Care & Social Assistance. The four industries reporting contraction of new orders in October are: Educational Services; Mining; Agriculture, Forestry, Fishing & Hunting; and Public Administration.

New Orders %Higher %Same %Lower Index

Oct 2016 28 56 16 57.7

Sep 2016 33 56 11 60.0

Aug 2016 22 59 19 51.4

Jul 2016 35 52 13 60.3

Employment

Employment activity in the non-manufacturing sector grew in October for the fifth consecutive month. ISM(R) 's Non-Manufacturing Employment Index registered 53.1 percent, which reflects a decrease of 4.1 percentage points when compared to the September reading of 57.2 percent. Six industries reported increased employment, and seven industries reported decreased employment. Comments from respondents include: "Increased sales positions to meet the increases in the market" and "Turnover and not all open positions filled."

The six industries reporting an increase in employment in October -- listed in order -- are: Construction; Management of Companies & Support Services; Retail Trade; Transportation & Warehousing; Health Care & Social Assistance; and Wholesale Trade. The seven industries reporting a reduction in employment in October -- listed in order -- are: Utilities; Mining; Public Administration; Professional, Scientific & Technical Services; Other Services; Arts, Entertainment & Recreation; and Information.

Employment %Higher %Same %Lower Index

Oct 2016 20 63 17 53.1

Sep 2016 21 66 13 57.2

Aug 2016 16 68 16 50.7

Jul 2016 22 63 15 51.4

Supplier Deliveries

Supplier deliveries were slower in October for the 10th consecutive month. The index registered 50.5 percent, which is 0.5 percentage point lower than the 51 percent that was registered in September. A reading above 50 percent indicates slower deliveries, while a reading below 50 percent indicates faster deliveries. Comments from respondents include: "Longer lead times on custom orders" and "Capacity issue."

The six industries reporting slower deliveries in October -- listed in order -- are: Real Estate, Rental & Leasing; Other Services; Transportation & Warehousing; Construction; Professional, Scientific & Technical Services; and Public Administration. The five industries reporting faster deliveries in October are: Educational Services; Utilities; Mining; Information; and Wholesale Trade. Seven industries reported no change in supplier deliveries in October compared to September.

Supplier Deliveries %Slower %Same %Faster Index

Oct 2016 7 87 6 50.5

Sep 2016 6 90 4 51.0

Aug 2016 8 87 5 51.5

Jul 2016 8 86 6 51.0

Inventories

ISM(R) 's Non-Manufacturing Inventories Index grew for the second consecutive month and registered 52 percent in October, which is 0.5 percentage point higher than the 51.5 percent that was reported in September. Of the total respondents in October, 30 percent indicated they do not have inventories, or do not measure them. Comments from respondents include: "Timing of deliveries; effort to reduce internally" and "Higher to fulfill increased orders."

The seven industries reporting an increase in inventories in October -- listed in order -- are: Transportation & Warehousing; Construction; Management of Companies & Support Services; Other Services; Professional, Scientific & Technical Services; Wholesale Trade; and Finance & Insurance. The three industries reporting decreases in inventories in October are: Information; Public Administration; and Health Care & Social Assistance. Eight industries reported no change in inventories in October compared to September.

Inventories %Higher %Same %Lower Index

Oct 2016 23 58 19 52.0

Sep 2016 21 61 18 51.5

Aug 2016 16 64 20 48.0

Jul 2016 23 62 15 54.0

Prices

Prices paid by non-manufacturing organizations for purchased materials and services increased in October for the seventh consecutive month. ISM(R) 's Non-Manufacturing Prices Index for October registered 56.6 percent, 2.6 percentage points higher than the 54 percent reported in September. The proportion of respondents reporting higher prices is 13 percent, 81 percent indicated no change in prices paid, and 6 percent of the respondents reported lower prices.

The nine non-manufacturing industries reporting an increase in prices paid during the month of October -- listed in order -- are: Real Estate, Rental & Leasing; Wholesale Trade; Management of Companies & Support Services; Mining; Retail Trade; Public Administration; Transportation & Warehousing; Construction; and Professional, Scientific & Technical Services. The four industries reporting a decrease in prices paid for the month of October are: Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; and Utilities.

Prices %Higher %Same %Lower Index

Oct 2016 13 81 6 56.6

Sep 2016 15 73 1254.0

Aug 2016 10 81 9 51.8

Jul 2016 15 78 7 51.9

NOTE: Commodities reported as up in price and down in price are listed in the commodities section of this report.

Backlog of Orders

ISM(R) 's Non-Manufacturing Backlog of Orders Index indicates order backlogs grew for the second consecutive month in October after contracting twice since June. The index registered 52 percent, which is the same percentage reported in September. Of the total respondents in October, 35 percent indicated they do not measure backlog of orders.

The eight industries reporting an increase in order backlogs in October -- listed in order -- are: Information; Other Services; Construction; Finance & Insurance; Retail Trade; Professional, Scientific & Technical Services; Transportation & Warehousing; and Health Care & Social Assistance. The three industries reporting a decrease in order backlogs in October are: Real Estate, Rental & Leasing; Public Administration; and Wholesale Trade. Six industries reported no change in order backlogs in October compared to September.

Backlog of Orders %Higher %Same %Lower Index

Oct 2016 19 66 15 52.0

Sep 2016 15 74 11 52.0

Aug 2016 12 75 13 49.5

Jul 2016 17 68 15 51.0

New Export Orders

Orders and requests for services and other non-manufacturing activities to be provided outside of the United States by domestically based personnel grew in October for the second consecutive month. The New Export Orders Index for October registered 55.5 percent, which is 1 percentage point lower than the 56.5 percent reported in September. Of the total respondents in October, 69 percent indicated they either do not perform, or do not separately measure, orders for work outside of the United States.

The six industries reporting an increase in new export orders in October -- listed in order -- are: Utilities; Construction; Finance & Insurance; Professional, Scientific & Technical Services; Other Services; and Retail Trade. The two industries reporting a decrease in new export orders in October are: Agriculture, Forestry, Fishing & Hunting; and Wholesale Trade. Nine industries reported no change in new export orders in October compared to September.

New Export Orders %Higher %Same %Lower Index

Oct 2016 17 77 6 55.5

Sep 2016 19 75 6 56.5

Aug 2016 8 77 15 46.5

Jul 2016 21 69 10 55.5

Imports

Imports of raw materials grew in October for the ninth consecutive month. This month's reading at 53 percent is 2 percentage points higher than the reading of 51 percent reported in September. Fifty-seven percent of respondents reported that they do not use,or do not track the use of, imported materials.

The six industries reporting an increase in imports for the month of October -- listed in order -- are: Accommodation & Food Services; Mining; Health Care & Social Assistance; Retail Trade; Professional, Scientific & Technical Services; and Wholesale Trade. The three industries reporting a decrease in imports for the month of October are: Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; and Construction. Eight industries reported no change in imports in October compared to September.

Imports %Higher %Same %Lower Index

Oct 2016 12 82 6 53.0

Sep 2016 11 80 9 51.0

Aug 2016 8 85 7 50.5

Jul 2016 13 80 7 53.0

Inventory Sentiment

The ISM(R) Non-Manufacturing Inventory Sentiment Index in October registered 62 percent, which is 2.5 percentage points lower than the reading of 64.5 percent reported in September. This indicates that respondents believe their inventories are still too high at this time. In October, 29 percent of respondents said their inventories were too high, 5 percent said their inventories were too low, and 66 percent said their inventories were about right.

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November 03, 2016 10:15 ET (14:15 GMT)

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