Service sector employee, nurse at a hospital. (Photo: REUTERS)
The Non-Manufacturing ISM Report On Business, the Institute for Supply Management’s gauge of U.S. service sector growth, increased to 54.5 in March. The NMI, which is up from 53.4 in February, beat the median economic forecast for a reading of 54.
“According to the NMI, 12 non-manufacturing industries reported growth in March,” said Anthony Nieves, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee.”The majority of respondents’ comments indicate that business conditions are mostly positive and that the economy is stable and will continue on a course of slow, steady growth.”
Readings above 50 indicate expansion, while those below point to contraction.
SERVICE SECTOR INDUSTRY PERFORMANCE IN MARCH
The 12 non-manufacturing industries reporting growth in March — listed in order — are: Educational Services; Information; Wholesale Trade; Finance & Insurance; Health Care & Social Assistance; Retail Trade; Mining; Management of Companies & Support Services; Accommodation & Food Services; Public Administration; Utilities; and Professional, Scientific & Technical Services. The two industries reporting contraction in March are: Arts, Entertainment & Recreation; and Transportation & Warehousing.
| ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS* MARCH 2016 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-Manufacturing | Manufacturing | ||||||||
| Index | Series Index Mar |
Series Index Feb |
Percent Point Change |
Direction | Rate of Change |
Trend** (Months) |
Series Index Mar |
Series Index Feb |
Percent Point Change |
| NMI®/PMI® | 54.5 | 53.4 | +1.1 | Growing | Faster | 74 | 51.8 | 49.5 | +2.3 |
| Business Activity/Production | 59.8 | 57.8 | +2.0 | Growing | Faster | 80 | 55.3 | 52.8 | +2.5 |
| New Orders | 56.7 | 55.5 | +1.2 | Growing | Faster | 80 | 58.3 | 51.5 | +6.8 |
| Employment | 50.3 | 49.7 | +0.6 | Growing | From Contracting |
1 | 48.1 | 48.5 | -0.4 |
| Supplier Deliveries | 51.0 | 50.5 | +0.5 | Slowing | Faster | 3 | 50.2 | 49.7 | +0.5 |
| Inventories | 52.5 | 52.5 | 0.0 | Growing | Same | 12 | 47.0 | 45.0 | +2.0 |
| Prices | 49.1 | 45.5 | +3.6 | Decreasing | Slower | 3 | 51.5 | 38.5 | +13.0 |
| Backlog of Orders | 52.0 | 52.0 | 0.0 | Growing | Same | 3 | 51.0 | 48.5 | +2.5 |
| New Export Orders | 58.5 | 53.5 | +5.0 | Growing | Faster | 2 | 52.0 | 46.5 | +5.5 |
| Imports | 53.0 | 55.5 | -2.5 | Growing | Slower | 2 | 49.5 | 49.0 | +0.5 |
| Inventory Sentiment | 62.5 | 62.0 | +0.5 | Too High | Faster | 226 | N/A | N/A | N/A |
| Customers’ Inventories | N/A | N/A | N/A | N/A | N/A | N/A | 49.0 | 47.0 | +2.0 |
| Overall Economy | Growing | Faster | 80 | ||||||
| Non-Manufacturing Sector | Growing | Faster | 74 | ||||||
* 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.
