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NMI® at 59%; August Non-Manufacturing ISM® Report On Business®; Business Activity Index at 63.9%; New Orders Index at 63.4%; Employment Index at 56%DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report's information reflects the entire United States, while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of August 2015. TEMPE, Ariz., Sept. 3, 2015 /PRNewswire/ -- Economic activity in the non-manufacturing sector grew in August for the 67th consecutive month, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM® Report On Business®. The report was issued today by Anthony Nieves, CPSM, C.P.M., CFPM, chair of the Institute for Supply Management® (ISM®) Non-Manufacturing Business Survey Committee. "The NMI® registered 59 percent in August, 1.3 percentage points lower than the July reading of 60.3 percent. This represents continued growth in the non-manufacturing sector at a slower rate. The Non-Manufacturing Business Activity Index decreased to 63.9 percent, which is 1 percentage point lower than the July reading of 64.9 percent, reflecting growth for the 73rd consecutive month at a slower rate. The New Orders Index registered 63.4 percent, 0.4 percentage point lower than the reading of 63.8 percent in July. The Employment Index decreased 3.6 percentage points to 56 percent from the July reading of 59.6 percent and indicates growth for the 18th consecutive month. The Prices Index decreased 2.9 percentage points from the July reading of 53.7 percent to 50.8 percent, indicating prices increased in August for the sixth consecutive month. According to the NMI®, 15 non-manufacturing industries reported growth in August. Overall, respondents continue to be optimistic about business conditions and the economy. This is reflected by indexes that are again strong; however, lower than what was seen in July." INDUSTRY PERFORMANCE The 15 non-manufacturing industries reporting growth in August — listed in order — are: Transportation & Warehousing; Real Estate, Rental & Leasing; Construction; Accommodation & Food Services; Retail Trade; Finance & Insurance; Public Administration; Health Care & Social Assistance; Educational Services; Utilities; Management of Companies & Support Services; Wholesale Trade; Arts, Entertainment & Recreation; Professional, Scientific & Technical Services; and Information. The only industry reporting contraction in August is Mining. WHAT RESPONDENTS ARE SAYING …
*Non-Manufacturing ISM® Report On Business® data is seasonally adjusted for Business Activity, New Orders, Prices and Employment Indexes. Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries. COMMODITIES REPORTED UP/DOWN IN PRICE, AND IN SHORT SUPPLY Commodities Up in Price Commodities Down in Price Commodities in Short Supply Note: The number of consecutive months the commodity is listed is indicated after each item. AUGUST 2015 NON-MANUFACTURING INDEX SUMMARIES NMI® An NMI® in excess of 48.7 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the August NMI® indicates growth for the 73rd consecutive month in the overall economy, and indicates expansion in the non-manufacturing sector for the 67th consecutive month. Nieves stated, "The past relationship between the NMI® and the overall economy indicates that the NMI® for August (59 percent) corresponds to a 4.4 percent increase in real gross domestic product (GDP) on an annualized basis." NMI® HISTORY
Business Activity The 14 industries reporting growth of business activity in August — listed in order — are: Arts, Entertainment & Recreation; Transportation & Warehousing; Construction; Retail Trade; Finance & Insurance; Health Care & Social Assistance; Public Administration; Real Estate, Rental & Leasing; Educational Services; Management of Companies & Support Services; Professional, Scientific & Technical Services; Utilities; Accommodation & Food Services; and Wholesale Trade. The only industry reporting a decrease in business activity in August is Mining.
New Orders The 13 industries reporting growth of new orders in August — listed in order — are: Construction; Transportation & Warehousing; Finance & Insurance; Public Administration; Utilities; Real Estate, Rental & Leasing; Accommodation & Food Services; Retail Trade; Health Care & Social Assistance; Professional, Scientific & Technical Services; Wholesale Trade; Information; and Management of Companies & Support Services. The only industry reporting contraction of new orders in August is Mining.
Employment The 12 industries reporting an increase in employment in August — listed in order — are: Accommodation & Food Services; Transportation & Warehousing; Real Estate, Rental & Leasing; Management of Companies & Support Services; Wholesale Trade; Educational Services; Finance & Insurance; Retail Trade; Utilities; Construction; Health Care & Social Assistance; and Public Administration. The three industries reporting a reduction in employment in August are: Mining; Arts, Entertainment & Recreation; and Professional, Scientific & Technical Services.
Supplier Deliveries The 10 industries reporting slower deliveries in August — listed in order — are: Real Estate, Rental & Leasing; Educational Services; Accommodation & Food Services; Construction; Wholesale Trade; Retail Trade; Public Administration; Health Care & Social Assistance; Utilities; and Professional, Scientific & Technical Services. The three industries reporting faster deliveries in August are: Mining; Finance & Insurance; and Transportation & Warehousing.
Inventories The eight industries reporting an increase in inventories in August — listed in order — are: Utilities; Public Administration; Transportation & Warehousing; Wholesale Trade; Construction; Accommodation & Food Services; Health Care & Social Assistance; and Information. The six industries reporting decreases in inventories in August — listed in order — are: Arts, Entertainment & Recreation; Management of Companies & Support Services; Professional, Scientific & Technical Services; Retail Trade; Finance & Insurance; and Mining.
Prices The five non-manufacturing industries reporting an increase in prices paid during the month of August are: Finance & Insurance; Educational Services; Transportation & Warehousing; Health Care & Social Assistance; and Utilities. The eight industries reporting a decrease in prices paid for the month of August — listed in order — are: Mining; Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; Information; Public Administration; Construction; Retail Trade; and Professional, Scientific & Technical Services.
NOTE: Commodities reported as up in price and down in price are listed in the commodities section of this report. Backlog of Orders The nine industries reporting an increase in order backlogs in August — listed in order — are: Construction; Finance & Insurance; Information; Real Estate, Rental & Leasing; Accommodation & Food Services; Public Administration; Professional, Scientific & Technical Services; Wholesale Trade; and Transportation & Warehousing. The five industries reporting a decrease in order backlogs in August are: Mining; Arts, Entertainment & Recreation; Utilities; Other Services; and Retail Trade.
New Export Orders The four industries reporting an increase in new export orders in August are: Construction; Accommodation & Food Services; Retail Trade; and Professional, Scientific & Technical Services. The only industry reporting a decrease in new export orders in August is Mining. Nine industries reported no change in new export orders in August compared to July.
Imports The six industries reporting an increase in imports for the month of August — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Public Administration; Professional, Scientific & Technical Services; Wholesale Trade; and Retail Trade. The two industries reporting a decrease in imports for the month of August are: Mining; and Other Services.
Inventory Sentiment The 12 industries reporting a feeling that their inventories are too high in August — listed in order — are: Mining; Arts, Entertainment & Recreation; Other Services; Wholesale Trade; Construction; Management of Companies & Support Services; Accommodation & Food Services; Transportation & Warehousing; Information; Finance & Insurance; Retail Trade; and Utilities.
About This Report Data and Method of Presentation Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (Business Activity, New Orders, Backlog of Orders, New Export Orders, Inventory Change, Inventory Sentiment, Imports, Prices, Employment and Supplier Deliveries), this report shows the percentage reporting each response, and the diffusion index. Responses represent raw data and are never changed. Data is seasonally adjusted for Business Activity, New Orders, Prices and Employment. All seasonal adjustment factors are subject annually to relatively minor changes when conditions warrant them. The remaining indexes have not indicated significant seasonality. The NMI® (Non-Manufacturing Index) is a composite index based on the diffusion indexes for four of the indicators with equal weights: Business Activity (seasonally adjusted), New Orders (seasonally adjusted), Employment (seasonally adjusted) and Supplier Deliveries. Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. An index reading above 50 percent indicates that the non-manufacturing economy is generally expanding; below 50 percent indicates that it is generally declining. Supplier Deliveries is an exception. A Supplier Deliveries Index above 50 percent indicates slower deliveries and below 50 percent indicates faster deliveries. An NMI® in excess of 48.7 percent, over a period of time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 48.7 percent, it is generally declining. The distance from 50 percent or 48.7 percent is indicative of the strength of the expansion or decline. The Non-Manufacturing ISM® Report On Business® survey is sent out to Non-Manufacturing Business Survey Committee respondents the first part of each month. Respondents are asked to ONLY report on information for the current month. ISM® receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses in order to give the most accurate picture of current business activity. ISM® then compiles the report for release on the third business day of the following month. The industries reporting growth, as indicated in the Non-Manufacturing ISM® Report On Business® monthly report, are listed in the order of most growth to least growth. For the industries reporting contraction or decreases, those are listed in the order of the highest level of contraction/decrease to the least level of contraction/decrease. About Institute for Supply Management® ISM ROB Content Except as explicitly and expressly permitted by ISM, you are strictly prohibited from creating works or materials (including but not limited to tables, charts, datastreams, timeseries variables, fonts, icons, link buttons, wallpaper, desktop themes, on-line postcards, montages, mash-ups and similar videos, greeting cards, and unlicensed merchandise) that derive from or are based on the ISM ROB Content. This prohibition applies regardless of whether the derivative works or materials are sold, bartered, or given away. You may not either directly or through the use of any device, software, internet site, web-based service, or other means remove, alter, bypass, avoid, interfere with, or circumvent any copyright, trademark, or other proprietary notices marked on the Content or any digital rights management mechanism, device, or other content protection or access control measure associated with the Content including geo-filtering mechanisms. Without prior written authorization from ISM, you may not build a business utilizing the Content, whether or not for profit. You may not create, recreate, distribute, incorporate in other work, or advertise an index of any portion of the Content unless you receive prior written authorization from ISM. Requests for permission to reproduce or distribute ISM ROB Content can be made by contacting in writing at: ISM Research, Institute for Supply Management, 2055 East Centennial Circle, Tempe, Arizona 85284-1802, or by emailing [email protected], Subject: Content Request. ISM shall not have any liability, duty, or obligation for or relating to the ISM ROB Content or other information contained herein, any errors, inaccuracies, omissions or delays in providing any ISM ROB Content, or for any actions taken in reliance thereon. In no event shall ISM be liable for any special, incidental, or consequential damages, arising out of the use of the ISM ROB. Report On Business®, PMI®, and NMI® are registered trademarks of Institute for Supply Management®. Institute for Supply Management® and ISM® are registered trademarks of Institute for Supply Management, Inc. The full text version of the Non-Manufacturing ISM® Report On Business® is posted on ISM®'s website at www.instituteforsupplymanagement.org on the third business day* of every month after 10:00 a.m. (ET). The next Non-Manufacturing ISM® Report On Business® featuring the September 2015 data will be released at 10:00 a.m. (ET) on Monday, October 5, 2015. *Unless the NYSE is closed.
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