Non-Manufacturing ISM Report On Business Unchanged From November
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*
|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|
|Inventory Sentiment||61.5||60.5||+1.0||Too High||Faster||235||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 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).