NMI Posts the Largest Single Month Gain in Survey History
Tempe, Arizona (PPD) — The Institute for Supply Management (ISM) Non-Manufacturing Index (NMI) rose to 57.1% in June, far stronger than economists expected. The reading indicates U.S. service sector activity returned to growth after two months of contraction.
Forecasts ranged from a low of 46.0 to a high of 52.7. The consensus forecast was 50.1. This is the largest single-month percentage-point gain since the NMI debut in 1997.
Last week, the Institute for Supply Management (ISM) Manufacturing Index (PMI) also came in stronger than expected at 52.6% in June, up from 43.1% in May. This reading further indicated the overall economy in expansion for the second straight month after one month of contraction that ended 131 consecutive months of growth.
|Index||Series Index Jun||Series Index May||Percent Point Change||Direction||Rate of Change||Trend** (Months)||Series Index Jun||Series Index May||Percent Point Change|
|NMI®/ PMI®||57.1||45.4||+11.7||Growing||From Contracting||1||52.6||43.1||+9.5|
|Business Activity/ Production||66.0||41.0||+25.0||Growing||From Contracting||1||57.3||33.2||+24.1|
|New Orders||61.6||41.9||+19.7||Growing||From Contracting||1||56.4||31.8||+24.6|
|Backlog of Orders||51.9||46.4||+5.5||Growing||From Contracting||1||45.3||38.2||+7.1|
|New Export Orders||58.9||41.5||+17.4||Growing||From Contracting||1||47.6||39.5||+8.1|
|Inventory Sentiment||55.9||55.1||+0.8||Too High||Faster||3||N/A||N/A||N/A|
|Overall Economy||Growing||From Contracting||1|
|Non-Manufacturing Sector||Growing||From Contracting||1|
**Number of months moving in current direction.