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NMI® at 55.3%; August Non-Manufacturing ISM® Report On Business®; Business Activity Index at 57.5%; New Orders Index at 57.1%; Employment Index at 56.2%TEMPE, Ariz., Sept. 6, 2017 /PRNewswire/ -- Economic activity in the non-manufacturing sector grew in August for the 92nd 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 55.3 percent, which is 1.4 percentage points higher than the July reading of 53.9 percent. This represents continued growth in the non-manufacturing sector at a faster rate. The Non-Manufacturing Business Activity Index increased to 57.5 percent, 1.6 percentage points higher than the July reading of 55.9 percent, reflecting growth for the 97th consecutive month, at a faster rate in August. The New Orders Index registered 57.1 percent, 2 percentage points higher than the reading of 55.1 percent in July. The Employment Index increased 2.6 percentage points in August to 56.2 percent from the July reading of 53.6 percent. The Prices Index increased 2.2 percentage points from the July reading of 55.7 percent to 57.9 percent, indicating prices increased in August for the third consecutive month. According to the NMI®, 15 non-manufacturing industries reported growth. The non-manufacturing sector has rebounded from the prior month's cooling-off period. The majority of respondents are optimistic about business conditions going forward." 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 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 August NMI® indicates growth for the 97th consecutive month in the overall economy, and indicates expansion in the non-manufacturing sector for the 92nd consecutive month. Nieves says, "The past relationship between the NMI® and the overall economy indicates that the NMI® for August (55.3 percent) corresponds to a 2.5 percent increase in real gross domestic product (GDP) on an annualized basis." NMI® HISTORY
Business Activity The 12 industries reporting growth of business activity in August — listed in order — are: Information; Retail Trade; Real Estate, Rental & Leasing; Management of Companies & Support Services; Utilities; Wholesale Trade; Other Services; Finance & Insurance; Public Administration; Professional, Scientific & Technical Services; Accommodation & Food Services; and Mining. The three industries reporting a decrease in business activity in August are: Agriculture, Forestry, Fishing & Hunting; Transportation & Warehousing; and Construction.
New Orders The 14 industries reporting growth of new orders in August — listed in order — are: Retail Trade; Utilities; Information; Management of Companies & Support Services; Educational Services; Real Estate, Rental & Leasing; Mining; Public Administration; Wholesale Trade; Other Services; Professional, Scientific & Technical Services; Accommodation & Food Services; Finance & Insurance; and Transportation & Warehousing. The two industries reporting a decrease in business activity in August are: Construction; and Health Care & Social Assistance.
Employment The 11 industries reporting an increase in employment in August — listed in order — are: Retail Trade; Real Estate, Rental & Leasing; Accommodation & Food Services; Construction; Other Services; Finance & Insurance; Management of Companies & Support Services; Mining; Wholesale Trade; Health Care & Social Assistance; and Transportation & Warehousing. The three industries reporting a reduction in employment in August are: Utilities; Information; and Public Administration.
Supplier Deliveries The seven industries reporting slower deliveries in August — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Educational Services; Mining; Information; Management of Companies & Support Services; Accommodation & Food Services; and Wholesale Trade. The six industries reporting faster deliveries in August — listed in order — are: Retail Trade; Finance & Insurance; Public Administration; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Construction.
Inventories The eight industries reporting an increase in inventories in August — listed in order — are: Utilities; Retail Trade; Real Estate, Rental & Leasing; Finance & Insurance; Accommodation & Food Services; Agriculture, Forestry, Fishing & Hunting; Public Administration; and Transportation & Warehousing. The six industries reporting decreases in inventories in August — listed in order — are: Educational Services; Mining; Other Services; Construction; Professional, Scientific & Technical Services; and Wholesale Trade.
Prices The 12 non-manufacturing industries reporting an increase in prices paid during the month of August — listed in order — are: Mining; Construction; Management of Companies & Support Services; Accommodation & Food Services; Wholesale Trade; Information; Real Estate, Rental & Leasing; Finance & Insurance; Transportation & Warehousing; Public Administration; Retail Trade; and Professional, Scientific & Technical Services. The three industries reporting a decrease in prices paid during the month of August are: Agriculture, Forestry, Fishing & Hunting; Other Services; and Health Care & Social Assistance.
NOTE: Commodities reported as up in price and down in price are listed in the commodities section of this report. Backlog of Orders The eight industries reporting an increase in order backlogs in August — listed in order — are: Finance & Insurance; Management of Companies & Support Services; Retail Trade; Accommodation & Food Services; Information; Public Administration; Health Care & Social Assistance; and Other Services. The five industries reporting a decrease in order backlogs in August are: Utilities; Transportation & Warehousing; Wholesale Trade; Construction; and Mining.
New Export Orders The seven industries reporting an increase in new export orders in August — listed in order — are: Mining; Information; Retail Trade; Finance & Insurance; Accommodation & Food Services; Wholesale Trade; and Professional, Scientific & Technical Services. The two industries reporting a decrease in export orders in August are: Public Administration; and Health Care & Social Assistance. Seven industries reported no change in exports in August compared to July.
Imports The six industries reporting an increase in imports for the month of August — listed in order — are: Real Estate, Rental & Leasing; Management of Companies & Support Services; Retail Trade; Mining; Construction; and Wholesale Trade. The three industries reporting a decrease in imports in the month of August are: Health Care & Social Assistance; Accommodation & Food Services; and Professional, Scientific & Technical Services. Seven industries reported no change in imports in August compared to July.
Inventory Sentiment The nine industries reporting a feeling that their inventories are too high in August — listed in order — are: Mining; Agriculture, Forestry, Fishing & Hunting; Utilities; Wholesale Trade; Public Administration; Construction; Retail Trade; Finance & Insurance; and Accommodation & Food Services. The only industry reporting a feeling that its inventory is too low in August, compared with July, is Transportation & Warehousing. Six industries reported no change in inventory sentiment in August compared to July.
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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Elliot Road, Suite 113, Tempe, AZ 85284-1556, 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 September 2017 data will be released at 10:00 a.m. ET on Wednesday, October 4, 2017. *Unless the NYSE is closed.
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