A service sector employee sits at his desk. (Photo: REUTERS)
The Non-Manufacturing ISM Report On Business, the Institute for Supply Management gauge of service-sector growth, was unchanged in December at 57.2. Still, the reading topped the median economic forecast that was looking for a reading of 56.6.
Readings above 50 indicate expansion, while those below point to contraction.
“This represents continued growth in the non-manufacturing sector at the same rate,” said Anthony Nieves, chair of the Institute for Supply Management (ISM) Non-Manufacturing Business Survey Committee. “The Non-Manufacturing Business Activity Index decreased to 61.4%, 0.3 percentage point lower than the November reading of 61.7 percent, reflecting growth for the 89th consecutive month, at a slightly slower rate in December.”
The 12 non-manufacturing industries reporting growth in December — listed in order — are: Mining; Retail Trade; Finance & Insurance; Information; Arts, Entertainment & Recreation; Construction; Other Services; Health Care & Social Assistance; Professional, Scientific & Technical Services; Utilities; Transportation & Warehousing; and Accommodation & Food Services.
“The New Orders Index registered 61.6%, 4.6 percentage points higher than the reading of 57% in November,” Mr. Nieves added. The Employment Index decreased 4.4 percentage points in December to 53.8% from the November reading of 58.2%.”
The 3 industries reporting contraction in December are: Public Administration; Wholesale Trade; and Agriculture, Forestry, Fishing & Hunting.
The Prices Index increased 0.7 percentage point to 57%, up from the November reading of 56.3%. The slight gain indicated prices increased in December for the ninth consecutive month at a slightly faster rate.
| ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS* DECEMBER 2016 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-Manufacturing | Manufacturing | ||||||||
| Index | Series Index Dec |
Series Index Nov |
Percent Point Change |
Direction | Rate of Change |
Trend** (Months) |
Series Index Dec |
Series Index Nov |
Percent Point Change |
| NMI®/PMI® | 57.2 | 57.2 | 0.0 | Growing | Same | 83 | 54.7 | 53.2 | +1.5 |
| Business Activity/Production | 61.4 | 61.7 | -0.3 | Growing | Slower | 89 | 60.3 | 56.0 | +4.3 |
| New Orders | 61.6 | 57.0 | +4.6 | Growing | Faster | 89 | 60.2 | 53.0 | +7.2 |
| Employment | 53.8 | 58.2 | -4.4 | Growing | Slower | 7 | 53.1 | 52.3 | +0.8 |
| Supplier Deliveries | 52.0 | 52.0 | 0.0 | Slowing | Same | 12 | 52.9 | 55.7 | -2.8 |
| Inventories | 52.0 | 51.5 | +0.5 | Growing | Faster | 4 | 47.0 | 49.0 | -2.0 |
| Prices | 57.0 | 56.3 | +0.7 | Increasing | Faster | 9 | 65.5 | 54.5 | +11.0 |
| Backlog of Orders | 48.0 | 51.0 | -3.0 | Contracting | From Growing | 1 | 49.0 | 49.0 | 0.0 |
| New Export Orders | 53.0 | 57.0 | -4.0 | Growing | Slower | 4 | 56.0 | 52.0 | +4.0 |
| Imports | 50.0 | 54.0 | -4.0 | Unchanged | From Growing | 1 | 50.5 | 50.5 | 0.0 |
| Inventory Sentiment | 61.5 | 60.5 | +1.0 | Too High | Faster | 235 | N/A | N/A | N/A |
| Customers’ Inventories | N/A | N/A | N/A | N/A | N/A | N/A | 49.0 | 49.0 | 0.0 |
| Overall Economy | Growing | Same | 89 | ||||||
| Non-Manufacturing Sector | Growing | Same | 83 | ||||||
* 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 Non-Manufacturing ISM® Report On Business® is based on data compiled from purchasing and supply executives nationwide. Membership of the Non-Manufacturing Business Survey Committee is diversified by NAICS, based on each industry’s contribution to gross domestic product (GDP).
