Non-manufacturing sector slows to a crawl

The non-manufacturing sector is experiencing anemic growth, reflecting difficult economic times and the financial crisis, according to an Institute for Supply Management Inc. report releasedtoday. September’s ISM non-manufacturing index fell to 50.2 last month, from 50.6 in August. The sector comprises 80% of the country’s gross domestic product, reflecting sectors such as banking, airlines and hotels. The new orders index last month increased 1.1 percentage points from August to 50.8%, and the employment index fell 1.2 percentage points to 44.2%, according to the report issued by the Temple, Ariz.–based ISM. “Respondents' comments are positive about the reduction in fuel and commodity costs; however, they remain concerned about overall market conditions and the economy,” Anthony Nieves, chairman of the ISM Non-Manufacturing Business Survey Committee and senior vice president of supply management at Beverly Hills, Calif.-based Hilton Hotels Corp., said in a statement.