Service Sector Activity Declines After Manufacturing Contracts
Service sector employee, nurse at a hospital. (Photo: REUTERS)
The Institute for Supply Management’s Non-Manufacturing Business Survey, a gauge of service-sector growth fell to 55.9 in November from 59.1 in October. The reading was below expectations for a shallower drop to 58, and the lowest since May. Readings above 50 indicate expansion, while those below point to contraction.
“According to the NMI, 12 non-manufacturing industries reported growth in November,” said Anthony Nieves, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee. “After a strong month of growth in October, the non-manufacturing sector’s rate of growth slowed in November. Most respondents are still positive about business conditions.”
| ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS* NOVEMBER 2015 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-Manufacturing | Manufacturing | ||||||||
| Index | Series Index Nov |
Series Index Oct |
Percent Point Change |
Direction | Rate of Change |
Trend** (Months) |
Series Index Nov |
Series Index Oct |
Percent Point Change |
| NMI®/PMI® | 55.9 | 59.1 | -3.2 | Growing | Slower | 70 | 48.6 | 50.1 | -1.5 |
| Business Activity/Production | 58.2 | 63.0 | -4.8 | Growing | Slower | 76 | 49.2 | 52.9 | -3.7 |
| New Orders | 57.5 | 62.0 | -4.5 | Growing | Slower | 76 | 48.9 | 52.9 | -4.0 |
| Employment | 55.0 | 59.2 | -4.2 | Growing | Slower | 21 | 51.3 | 47.6 | +3.7 |
| Supplier Deliveries | 53.0 | 52.0 | +1.0 | Slowing | Faster | 6 | 50.6 | 50.4 | +0.2 |
| Inventories | 54.5 | 52.5 | +2.0 | Growing | Faster | 8 | 43.0 | 46.5 | -3.5 |
| Prices | 50.3 | 49.1 | +1.2 | Increasing | From Decreasing | 1 | 35.5 | 39.0 | -3.5 |
| Backlog of Orders | 51.5 | 54.5 | -3.0 | Growing | Slower | 6 | 43.0 | 42.5 | +0.5 |
| New Export Orders | 49.5 | 54.5 | -5.0 | Contracting | From Growing | 1 | 47.5 | 47.5 | 0.0 |
| Imports | 51.0 | 54.5 | -3.5 | Growing | Slower | 5 | 49.0 | 47.0 | +2.0 |
| Inventory Sentiment | 63.5 | 63.0 | +0.5 | Too High | Faster | 222 | N/A | N/A | N/A |
| Customers’ Inventories | N/A | N/A | N/A | N/A | N/A | N/A | 50.5 | 51.0 | -0.5 |
| Overall Economy | Growing | Slower | 76 | ||||||
| Non-Manufacturing Sector | Growing | Slower | 70 | ||||||
* 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.
** Number of months moving in current direction.
COMMODITIES REPORTED UP/DOWN IN PRICE, AND IN SHORT SUPPLY
Commodities Up in Price
Butter (3); Dairy Products; Food Products (2); Labor (7); Lettuce; Lumber Products – Pine, Spruce, and Treated; Produce; and Strawberries.
Commodities Down in Price
Aluminum; Beef; Chicken; Copper; #1 Diesel Fuel (4); #2 Diesel Fuel (3); Fuel (4); Gasoline (5); Lab Supplies; Natural Gas; Oil; Shrimp; Software Related; and Soybean Meal.
Commodities in Short Supply
Labor (2); and Turkey (2).
Note: The number of consecutive months the commodity is listed is indicated after each item.
