Growth in ISM Services Index Slows

Tempe, AZ, October 4, 2006–Nonmanufacturing sectors of the economy expanded at a slower pace during September, the Institute for Supply Management reported Wednesday.

The ISM nonmanufacturing index fell to 52.9% from 57.0% in August. The drop was sharper than expected.

Economists were looking the index to slip to 56.2%.

The headline index is not a weighted average of the survey’s other key components.

New orders rose to 57.2% from 52.1%. The employment index rose to 53.6% from 51.4%. Inflation pressures eased sharply.

The price index plunged to 56.7% from 72.4% in the previous month.