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NMI® at 51.4%; August Non-Manufacturing ISM® Report On Business®; Business Activity Index at 51.8%; New Orders Index at 51.4%; Employment Index at 50.7%TEMPE, Ariz., Sept. 6, 2016 /PRNewswire/ -- Economic activity in the non-manufacturing sector grew in August for the 79th consecutive month, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM® Report On Business®. The report was issued today by Anthony Nieves, CPSM, C.P.M., CFPM, chair of the Institute for Supply Management® (ISM®) Non-Manufacturing Business Survey Committee. "The NMI® registered 51.4 percent in August, 4.1 percentage points lower than the July reading of 55.5 percent. This represents continued growth in the non-manufacturing sector at a slower rate. The Non-Manufacturing Business Activity Index decreased substantially to 51.8 percent, 7.5 percentage points lower than the July reading of 59.3 percent, reflecting growth for the 85th consecutive month, at a notably slower rate in August. The New Orders Index registered 51.4 percent, 8.9 percentage points lower than the reading of 60.3 percent in July. The Employment Index decreased 0.7 percentage point in August to 50.7 percent from the July reading of 51.4 percent. The Prices Index decreased 0.1 percentage point from the July reading of 51.9 percent to 51.8 percent, indicating prices increased in August for the fifth consecutive month. According to the NMI®, 11 non-manufacturing industries reported growth in August. The majority of the respondents' comments indicate that there has been a slowing in the level of business for their respective companies." INDUSTRY PERFORMANCE WHAT RESPONDENTS ARE SAYING …
*Non-Manufacturing ISM® Report On Business® data is seasonally adjusted for the 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. COMMODITIES REPORTED UP/DOWN IN PRICE, AND IN SHORT SUPPLY Commodities Up in Price Commodities Down in Price Commodities in Short Supply Note: The number of consecutive months the commodity is listed is indicated after each item. AUGUST 2016 NON-MANUFACTURING INDEX SUMMARIES NMI® An NMI® above 48.9 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the August NMI® indicates growth for the 85th consecutive month in the overall economy, and indicates expansion in the non-manufacturing sector for the 79th consecutive month. Nieves stated, "The past relationship between the NMI® and the overall economy indicates that the NMI® for August (51.4 percent) corresponds to a 1 percent increase in real gross domestic product (GDP) on an annualized basis." NMI® HISTORY
Business Activity The nine industries reporting growth of business activity in August — listed in order — are: Utilities; Real Estate, Rental & Leasing; Finance & Insurance; Accommodation & Food Services; Public Administration; Management of Companies & Support Services; Health Care & Social Assistance; Construction; and Professional, Scientific & Technical Services. The six industries reporting a decrease in business activity in August — listed in order — are: Other Services; Agriculture, Forestry, Fishing & Hunting; Wholesale Trade; Transportation & Warehousing; Retail Trade; and Arts, Entertainment & Recreation.
New Orders The eight industries reporting growth of new orders in August — listed in order — are: Utilities; Finance & Insurance; Accommodation & Food Services; Public Administration; Management of Companies & Support Services; Health Care & Social Assistance; Information; and Professional, Scientific & Technical Services. The eight industries reporting contraction of new orders in August — listed in order — are: Other Services; Wholesale Trade; Mining; Agriculture, Forestry, Fishing & Hunting; Transportation & Warehousing; Retail Trade; Construction; and Educational Services.
Employment The nine industries reporting an increase in employment in August — listed in order — are: Retail Trade; Health Care & Social Assistance; Professional, Scientific & Technical Services; Accommodation & Food Services; Wholesale Trade; Utilities; Construction; Finance & Insurance; and Management of Companies & Support Services. The five industries reporting a reduction in employment in August are: Other Services; Transportation & Warehousing; Mining; Public Administration; and Information.
Supplier Deliveries The seven industries reporting slower deliveries in August — listed in order — are: Real Estate, Rental & Leasing; Educational Services; Information; Utilities; Construction; Wholesale Trade; and Professional, Scientific & Technical Services. The four industries reporting faster deliveries in August are: Mining; Health Care & Social Assistance; Retail Trade; and Public Administration. Seven industries listed no change in supplier deliveries in August compared to July.
Inventories The five industries reporting an increase in inventories in August are: Arts, Entertainment & Recreation; Construction; Retail Trade; Professional, Scientific & Technical Services; and Utilities. The 10 industries reporting decreases in inventories in August — listed in order — are: Educational Services; Other Services; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Public Administration; Information; Transportation & Warehousing; Finance & Insurance; Health Care & Social Assistance; and Wholesale Trade.
Prices The six non-manufacturing industries reporting an increase in prices paid during the month of August — listed in order — are: Real Estate, Rental & Leasing; Accommodation & Food Services; Professional, Scientific & Technical Services; Construction; Public Administration; and Finance & Insurance. The eight industries reporting a decrease in prices paid for the month of August — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Mining; Management of Companies & Support Services; Information; Transportation & Warehousing; Retail Trade; Health Care & Social Assistance; and Wholesale Trade.
NOTE: Commodities reported as up in price and down in price are listed in the commodities section of this report. Backlog of Orders The seven industries reporting an increase in order backlogs in August — listed in order — are: Educational Services; Retail Trade; Finance & Insurance; Transportation & Warehousing; Information; Public Administration; and Construction. The five industries reporting a decrease in order backlogs in August are: Other Services; Utilities; Wholesale Trade; Professional, Scientific & Technical Services; and Health Care & Social Assistance. Six industries listed no change in order backlogs in August compared to July.
New Export Orders The three industries reporting an increase in new export orders in August are: Utilities; Construction; and Information. The five industries reporting a decrease in new export orders in August are: Arts, Entertainment & Recreation; Retail Trade; Health Care & Social Assistance; Wholesale Trade; and Professional, Scientific & Technical Services. Nine industries reported no change in new export orders in August compared to July.
Imports The three industries reporting an increase in imports for the month of August are: Utilities; Accommodation & Food Services; and Wholesale Trade. The two industries reporting a decrease in imports for the month of August are: Transportation & Warehousing; and Professional, Scientific & Technical Services. Twelve industries reported no change in imports in August compared to July.
Inventory Sentiment The 10 industries reporting a feeling that their inventories are too high in August — listed in order — are: Arts, Entertainment & Recreation; Other Services; Wholesale Trade; Mining; Utilities; Retail Trade; Public Administration; Finance & Insurance; Accommodation & Food Services; and Health Care & Social Assistance. The only industry reporting the feeling that their inventory was too low for the month of August is Transportation & Warehousing.
About This Report The data presented herein is obtained from a survey of non-manufacturing supply executives based on information they have collected within their respective organizations. ISM® makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making. Data and Method of Presentation Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (Business Activity, New Orders, Backlog of Orders, New Export Orders, Inventory Change, Inventory Sentiment, Imports, Prices, Employment and Supplier Deliveries), this report shows the percentage reporting each response, and the diffusion index. Responses represent raw data and are never changed. Data is seasonally adjusted for Business Activity, New Orders, Prices and Employment. All seasonal adjustment factors are subject annually to relatively minor changes when conditions warrant them. The remaining indexes have not indicated significant seasonality. The NMI® (Non-Manufacturing Index) is a composite index based on the diffusion indexes for four of the indicators with equal weights: Business Activity (seasonally adjusted), New Orders (seasonally adjusted), Employment (seasonally adjusted) and Supplier Deliveries. Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. An index reading above 50 percent indicates that the non-manufacturing economy is generally expanding; below 50 percent indicates that it is generally declining. Supplier Deliveries is an exception. A Supplier Deliveries Index above 50 percent indicates slower deliveries and below 50 percent indicates faster deliveries. An NMI® above 48.9 percent, over a period of time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 48.9 percent, it is generally declining. The distance from 50 percent or 48.9 percent is indicative of the strength of the expansion or decline. The Non-Manufacturing ISM® Report On Business® survey is sent out to Non-Manufacturing Business Survey Committee respondents the first part of each month. Respondents are asked to ONLY report on information for the current month. ISM® receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses in order to give the most accurate picture of current business activity. ISM® then compiles the report for release on the third business day of the following month. The industries reporting growth, as indicated in the Non-Manufacturing ISM® Report On Business® monthly report, are listed in the order of most growth to least growth. For the industries reporting contraction or decreases, those are listed in the order of the highest level of contraction/decrease to the least level of contraction/decrease. ISM ROB Content Except as explicitly and expressly permitted by ISM, you are strictly prohibited from creating works or materials (including but not limited to tables, charts, datastreams, timeseries variables, fonts, icons, link buttons, wallpaper, desktop themes, on-line postcards, montages, mash-ups and similar videos, greeting cards, and unlicensed merchandise) that derive from or are based on the ISM ROB Content. This prohibition applies regardless of whether the derivative works or materials are sold, bartered, or given away. You may not either directly or through the use of any device, software, internet site, web-based service, or other means remove, alter, bypass, avoid, interfere with, or circumvent any copyright, trademark, or other proprietary notices marked on the Content or any digital rights management mechanism, device, or other content protection or access control measure associated with the Content including geo-filtering mechanisms. Without prior written authorization from ISM, you may not build a business utilizing the Content, whether or not for profit. You may not create, recreate, distribute, incorporate in other work, or advertise an index of any portion of the Content unless you receive prior written authorization from ISM. Requests for permission to reproduce or distribute ISM ROB Content can be made by contacting in writing at: ISM Research, Institute for Supply Management, 2055 East Centennial Circle, Tempe, Arizona 85284-1802, or by emailing [email protected], Subject: Content Request. ISM shall not have any liability, duty, or obligation for or relating to the ISM ROB Content or other information contained herein, any errors, inaccuracies, omissions or delays in providing any ISM ROB Content, or for any actions taken in reliance thereon. In no event shall ISM be liable for any special, incidental, or consequential damages, arising out of the use of the ISM ROB. Report On Business®, PMI®, and NMI® are registered trademarks of Institute for Supply Management®. Institute for Supply Management® and ISM® are registered trademarks of Institute for Supply Management, Inc. About Institute for Supply Management® The full text version of the Non-Manufacturing ISM® Report On Business® is posted on ISM®'s website at www.ismrob.org on the third business day* of every month after 10:00 a.m. (ET). The next Non-Manufacturing ISM® Report On Business® featuring the September 2016 data will be released at 10:00 a.m. (ET) on Wednesday, October 5, 2016. *Unless the NYSE is closed.
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