The Non-Manufacturing Report on Business (NMI), a gauge of U.S. service sector activity by the Institute for Supply Management, expanded slowly in May. However, the NMI continued to show growth and 14 non-manufacturing industries show signs of resilience in a weakening U.S. economy. Non-manufacturing activity on the NMI fell to 52.9 in May, down 2.8% from 55.7 in April. Economists surveyed by The Wall Street Journal expected a smaller tick down to 55.5. A reading above 50 indicates that services activity is expanding, while a reading below 50 signals contraction. May marked the 76th month of expansion in the service sector of the economy, which covers everything from banking to burger chains.
|ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS* MAY 2016|
|Index||Series Index May||Series Index Apr||Percent Point Change||Direction||Rate of Change||Trend** (Months)||Series Index May||Series Index Apr||Percent Point Change|
|Backlog of Orders||50.0||51.5||-1.5||Unchanged||From Growing||1||47.0||50.5||-3.5|
|New Export Orders||49.0||56.5||-7.5||Contracting||From Growing||1||52.5||52.5||0.0|
|Inventory Sentiment||60.0||61.0||-1.0||Too High||Slower||228||N/A||N/A||N/A|
* 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. The 14 non-manufacturing industries reporting growth in May — listed in order — are: Health Care & Social Assistance; Accommodation & Food Services; Utilities; Wholesale Trade; Agriculture, Forestry, Fishing & Hunting; Construction; Public Administration; Real Estate, Rental & Leasing; Management of Companies & Support Services; Information; Finance & Insurance; Retail Trade; Transportation & Warehousing; and Arts, Entertainment & Recreation. The four industries reporting contraction in May are: Mining; Other Services; Educational Services; and Professional, Scientific & Technical Services.