The Institute for Supply Management released their second report for December 2009 this week - this time focusing on Non-Manufacturing businesses, which range from financial jobs to pet care.  Non-Manufacturing businesses are approximately 88% of the U.S economy.  The Non-Manufacturing Index increased last month to 50.1 from 48.7 in November.

From this snapshot of time, the numbers don’t look all that good, even though technically the index shows the sector as in expansion.  The numbers are, however, much better than the indexes 37.4 low in November 2008, up about 13 points.  The manufacturing index is on a much higher pace, up from its December 2008 low by 23 points.

Employment in the sector is still contracting, as the trend has been for 20 months, but the contraction is slowing.  A welcome sign and possibly an indication of what Friday’s job report has in store.  We will see.

Above tables and full report can be found at the ISM website