The service industry is the largest component of the economy and the report due out today is projected to show little progress. The Institute for Supply Management’s (ISM) Non-purchasing Index measures growth in the service industry.
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Covering 90% of the economy, the index is expected to fall to 53.4 in September from 53.7 in August, indicating the service economy is holding steady with little growth.
The ISM Group’s manufacturing index showed unexpected expansion in its release on October 1. It ended a three-month long contraction, the longest contraction since June of 2009 when the recession ended.
The index covers service industries including utilities, healthcare, retailing, housing, and finance.
The range of estimates for the report due out at 10 a.m. October 3 is from 51.5 to 54.7.
Since Commerce Department figures last month showed the strongest pace of single family housing starts in over two years, the homebuilding component of the ISM index is expected to be one of the best service industry performers.
You can get an industry-by-industry breakdown of forecasts here