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NMI® at 55.2%; March Non-Manufacturing ISM® Report On Business®; Business Activity Index at 58.9%; New Orders Index at 58.9%; Employment Index at 51.6%TEMPE, Ariz., April 5, 2017 /PRNewswire/ -- Economic activity in the non-manufacturing sector grew in March for the 87th 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., A.P.P., CFPM, Chair of the Institute for Supply Management® (ISM®) Non-Manufacturing Business Survey Committee: "The NMI® registered 55.2 percent, which is 2.4 percentage points lower than the February reading of 57.6 percent. This represents continued growth in the non-manufacturing sector at a slower rate. The Non-Manufacturing Business Activity Index decreased to 58.9 percent, 4.7 percentage points lower than the February reading of 63.6 percent, reflecting growth for the 92nd consecutive month, at a slower rate in March. The New Orders Index registered 58.9 percent, 2.3 percentage points lower than the reading of 61.2 percent in February. The Employment Index decreased 3.6 percentage points in March to 51.6 percent from the February reading of 55.2 percent. The Prices Index decreased 4.2 percentage points from the February reading of 57.7 percent to 53.5 percent, indicating prices increased for the 12th consecutive month, at a slower rate in March. According to the NMI®, 15 non-manufacturing industries reported growth in March. The sector continues to reflect growth; however, the rate of growth has declined since last month. The majority of respondents' comments indicate a positive outlook on business conditions and the overall economy. There were several comments about the uncertainty of future government policies on health care, trade and immigration, and the potential impact on business." 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. **Number of months moving in current direction. 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. MARCH 2017 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 March NMI® indicates growth for the 92nd consecutive month in the overall economy, and indicates expansion in the non-manufacturing sector for the 87th consecutive month. Nieves stated, "The past relationship between the NMI® and the overall economy indicates that the NMI® for March (55.2 percent) corresponds to a 2.4 percent increase in real gross domestic product (GDP) on an annualized basis." NMI® HISTORY
Business Activity The 14 industries reporting growth of business activity in March — listed in order — are: Utilities; Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Accommodation & Food Services; Transportation & Warehousing; Retail Trade; Mining; Wholesale Trade; Management of Companies & Support Services; Health Care & Social Assistance; Construction; Other Services; Finance & Insurance; and Public Administration. The two industries reporting a decrease in business activity in March are: Educational Services; and Information.
New Orders The 13 industries reporting growth of new orders in March — listed in order — are: Utilities; Retail Trade; Management of Companies & Support Services; Real Estate, Rental & Leasing; Transportation & Warehousing; Wholesale Trade; Finance & Insurance; Health Care & Social Assistance; Agriculture, Forestry, Fishing & Hunting; Mining; Other Services; Construction; and Accommodation & Food Services. The three industries reporting contraction of new orders in March are: Educational Services; Information; and Professional, Scientific & Technical Services.
Employment The nine industries reporting an increase in employment in March — listed in order — are: Arts, Entertainment & Recreation; Educational Services; Management of Companies & Support Services; Accommodation & Food Services; Mining; Wholesale Trade; Construction; Health Care & Social Assistance; and Retail Trade. The six industries reporting a reduction in employment in March — listed in order — are: Information; Transportation & Warehousing; Utilities; Professional, Scientific & Technical Services; Public Administration; and Other Services.
Supplier Deliveries The eight industries reporting slower deliveries in March — listed in order — are: Management of Companies & Support Services; Mining; Transportation & Warehousing; Wholesale Trade; Accommodation & Food Services; Public Administration; Health Care & Social Assistance; and Professional, Scientific & Technical Services. The three industries reporting faster deliveries in March are: Finance & Insurance; Information; and Retail Trade. Seven industries reported no change in supplier deliveries in March compared to February.
Inventories The five industries reporting an increase in inventories in March are: Utilities; Information; Accommodation & Food Services; Professional, Scientific & Technical Services; and Finance & Insurance. The eight industries reporting decreases in inventories in March — listed in order — are: Other Services; Management of Companies & Support Services; Construction; Transportation & Warehousing; Retail Trade; Public Administration; Health Care & Social Assistance; and Wholesale Trade.
Prices The 11 non-manufacturing industries reporting an increase in prices paid during the month of March — listed in order — are: Wholesale Trade; Agriculture, Forestry, Fishing & Hunting; Construction; Utilities; Public Administration; Accommodation & Food Services; Other Services; Mining; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Transportation & Warehousing. The only industry reporting a decrease in prices paid for the month of March is Management of Companies & Support Services. Six industries reported no change in prices in March compared to February.
NOTE: Commodities reported as up in price and down in price are listed in the commodities section of this report. Backlog of Orders The nine industries reporting an increase in order backlogs in March — listed in order — are: Utilities; Transportation & Warehousing; Mining; Management of Companies & Support Services; Retail Trade; Finance & Insurance; Health Care & Social Assistance; Public Administration; and Wholesale Trade. The three industries reporting a decrease in order backlogs in March are: Information; Construction; and Professional, Scientific & Technical Services.
New Export Orders The 11 industries reporting an increase in new export orders in March — listed in order — are: Management of Companies & Support Services; Retail Trade; Agriculture, Forestry, Fishing & Hunting; Mining; Other Services; Finance & Insurance; Health Care & Social Assistance; Wholesale Trade; Professional, Scientific & Technical Services; Transportation & Warehousing; and Accommodation & Food Services. No industry reported a decrease in new export orders in March.
Imports The seven industries reporting an increase in imports for the month of March — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Wholesale Trade; Health Care & Social Assistance; Accommodation & Food Services; Construction; Professional, Scientific & Technical Services; and Transportation & Warehousing. No industry reported a decrease in imports in the month of March. Nine industries reported no change in imports in March compared to February.
Inventory Sentiment The 11 industries reporting a feeling that their inventories are too high in March — listed in order — are: Mining; Information; Wholesale Trade; Management of Companies & Support Services; Health Care & Social Assistance; Finance & Insurance; Professional, Scientific & Technical Services; Utilities; Other Services; Retail Trade; and Public Administration. The two industries reporting a feeling that their inventories are too low in March compared to February are: Transportation & Warehousing; and Accommodation & Food Services.
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. 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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 April 2017 data will be released at 10:00 a.m. (ET) on Wednesday, May 3, 2017. *Unless the NYSE is closed.
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