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Thursday, April 25, 2024
HomeNewsEconomyISM Non-Manufacturing Report on Business: Service Sector Growth Tops Views

ISM Non-Manufacturing Report on Business: Service Sector Growth Tops Views

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(PHOTO: REUTERS)

The Non-Manufacturing Report on Business, the Institute for Supply Management’s gauge of service-sector growth, increased to 55.7 last month from 54.5 in March. The reading also topped the expectation for a reading of 54.7.

Readings above 50 in the NMI indicate expansion, while those below point to contraction.

The Business Activity Index in April registered 58.8%, a decrease of 1 percentage point from March’s reading of 59.8%. However, this marks growth in business activity for the 81st consecutive month. Employment activity in the non-manufacturing sector grew in April for the second consecutive month, up 2.7% to 53.

Non-Manufacturing Sector Industry Performance

The 13 non-manufacturing industries reporting growth in April — listed in order — are: Information; Management of Companies & Support Services; Accommodation & Food Services; Wholesale Trade; Health Care & Social Assistance; Utilities; Finance & Insurance; Real Estate, Rental & Leasing; Construction; Agriculture, Forestry, Fishing & Hunting; Public Administration; Professional, Scientific & Technical Services; and Retail Trade. The four industries reporting contraction in April are: Other Services; Mining; Transportation & Warehousing; and Educational Services.

ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE
COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS*
APRIL 2016
Non-Manufacturing Manufacturing
Index Series
Index
Apr
Series
Index
Mar
Percent
Point
Change
Direction Rate
of
Change
Trend**
(Months)
Series
Index
Apr
Series
Index
Mar
Percent
Point
Change
NMI®/PMI® 55.7 54.5 +1.2 Growing Faster 75 50.8 51.8 -1.0
Business Activity/Production 58.8 59.8 -1.0 Growing Slower 81 54.2 55.3 -1.1
New Orders 59.9 56.7 +3.2 Growing Faster 81 55.8 58.3 -2.5
Employment 53.0 50.3 +2.7 Growing Faster 2 49.2 48.1 +1.1
Supplier Deliveries 51.0 51.0 0.0 Slowing Same 4 49.1 50.2 -1.1
Inventories 54.0 52.5 +1.5 Growing Faster 13 45.5 47.0 -1.5
Prices 53.4 49.1 +4.3 Increasing From
Decreasing
1 59.0 51.5 +7.5
Backlog of Orders 51.5 52.0 -0.5 Growing Slower 4 50.5 51.0 -0.5
New Export Orders 56.5 58.5 -2.0 Growing Slower 3 52.5 52.0 +0.5
Imports 54.0 53.0 +1.0 Growing Faster 3 50.0 49.5 +0.5
Inventory Sentiment 61.0 62.5 -1.5 Too High Slower 227 N/A N/A N/A
Customers’ Inventories N/A N/A N/A N/A N/A N/A 46.0 49.0 -3.0
Overall Economy Growing Faster 81
Non-Manufacturing Sector Growing Faster 75

* 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.

Written by

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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