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NMI® at 55.7%; July Non-Manufacturing ISM® Report On Business®Business Activity Index at 56.5%; New Orders Index at 57.0%; Employment Index at 56.1% TEMPE, Ariz., Aug. 3, 2018 /PRNewswire/ -- Economic activity in the non-manufacturing sector grew in July for the 102nd 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 55.7 percent, which is 3.4 percentage points lower than the June reading of 59.1 percent. This represents continued growth in the non-manufacturing sector at a slower rate. There was a notable decrease in the Business Activity Index, which fell to 56.5 percent, 7.4 percentage points lower than the June reading of 63.9 percent. The July figure still reflects growth for the 108th consecutive month, at a slower rate. The New Orders Index registered 57 percent, 6.2 percentage points lower than the reading of 63.2 percent in June. The Employment Index increased 2.5 percentage points in July to 56.1 percent from the June reading of 53.6 percent. The Prices Index increased by 2.7 percentage points from the June reading of 60.7 percent to 63.4 percent, indicating that prices increased in July for the 29th consecutive month. According to the NMI®, 16 non-manufacturing industries reported growth. There has been a 'cooling off' in growth for the non-manufacturing sector. Tariffs and deliveries are an ongoing concern. The majority of respondents remain positive about business conditions and the economy." INDUSTRY PERFORMANCE The 16 non-manufacturing industries reporting growth in July — listed in order — are: Mining; Public Administration; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Other Services; Construction; Real Estate, Rental & Leasing; Transportation & Warehousing; Finance & Insurance; Retail Trade; Wholesale Trade; Arts, Entertainment & Recreation; Information; Utilities; Health Care & Social Assistance; and Management of Companies & Support Services. The two industries reporting a decrease are: Educational Services; and Professional, Scientific & Technical Services. 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. JULY 2018 NON-MANUFACTURING INDEX SUMMARIES NMI® An NMI® above 49 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the July NMI® indicates growth for the 107th consecutive month in the overall economy and expansion in the non-manufacturing sector for the 102nd consecutive month. Nieves says, "The past relationship between the NMI® and the overall economy indicates that the NMI® for July (55.7 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 July — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Mining; Public Administration; Accommodation & Food Services; Finance & Insurance; Arts, Entertainment & Recreation; Real Estate, Rental & Leasing; Wholesale Trade; Transportation & Warehousing; Retail Trade; Other Services; and Information. The three industries reporting a decrease in business activity in July are: Educational Services; Health Care & Social Assistance; and Professional, Scientific & Technical Services.
New Orders The 12 industries reporting growth of new orders in July — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Public Administration; Mining; Accommodation & Food Services; Other Services; Construction; Transportation & Warehousing; Finance & Insurance; Retail Trade; Professional, Scientific & Technical Services; Information; and Real Estate, Rental & Leasing. The two industries reporting a decrease in new orders for the month of July are: Educational Services; and Health Care & Social Assistance.
Employment The 12 industries reporting an increase in employment in July — listed in order — are: Other Services; Real Estate, Rental & Leasing; Retail Trade; Mining; Construction; Health Care & Social Assistance; Public Administration; Management of Companies & Support Services; Utilities; Transportation & Warehousing; Finance & Insurance; and Wholesale Trade. The four industries reporting a reduction in employment in July are: Educational Services; Professional, Scientific & Technical Services; Information; and Arts, Entertainment & Recreation.
Supplier Deliveries The 10 industries reporting slower deliveries in July — listed in order — are: Construction; Information; Mining; Transportation & Warehousing; Wholesale Trade; Accommodation & Food Services; Public Administration; Professional, Scientific & Technical Services; Health Care & Social Assistance; and Real Estate, Rental & Leasing. The three industries reporting faster deliveries in July are: Other Services; Management of Companies & Support Services; and Retail Trade.
Inventories The eight industries reporting an increase in inventories in July — listed in order — are: Accommodation & Food Services; Transportation & Warehousing; Wholesale Trade; Finance & Insurance; Mining; Other Services; Information; and Health Care & Social Assistance. The five industries reporting a decrease inventories are: Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Construction; Public Administration; and Management of Companies & Support Services.
Prices The 15 non-manufacturing industries reporting an increase in prices paid during the month of July — listed in order — are: Mining; Management of Companies & Support Services; Public Administration; Other Services; Wholesale Trade; Information; Educational Services; Construction; Transportation & Warehousing; Retail Trade; Professional, Scientific & Technical Services; Real Estate, Rental & Leasing; Health Care & Social Assistance; Accommodation & Food Services; and Finance & Insurance. The only industry reporting lower prices in July compared to June is Agriculture, Forestry, Fishing & Hunting.
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 July — listed in order — are: Accommodation & Food Services; Mining; Other Services; Finance & Insurance; Professional, Scientific & Technical Services; Construction; and Wholesale Trade. The four industries reporting a decrease in order backlogs in July are: Utilities; Real Estate, Rental & Leasing; Health Care & Social Assistance; and Information. Six industries reported no change in July compared to June.
New Export Orders The 10 industries reporting an increase in new export orders in July — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Mining; Real Estate, Rental & Leasing; Retail Trade; Information; Wholesale Trade; Other Services; Accommodation & Food Services; Transportation & Warehousing; and Professional, Scientific & Technical Services. The two industries reporting a decrease in exports for the month of July are: Public Administration; and Health Care & Social Assistance.
Imports The six industries reporting an increase in imports for the month of July — listed in order — are: Utilities; Mining; Other Services; Transportation & Warehousing; Wholesale Trade; and Health Care & Social Assistance. The only industry reporting a decrease in imports in the month of July is Retail Trade. Nine industries reported no change in imports in July compared to June.
Inventory Sentiment The six industries reporting a feeling that their inventories were too high in July — listed in order — are: Mining; Wholesale Trade; Utilities; Management of Companies & Support Services; Health Care & Social Assistance; and Information. The two industries reporting a feeling that their inventories were too low in July are: Other Services; and Public Administration. Eight industries reported no change in inventory sentiment in July compared to June.
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 49 percent, over a period of time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 49 percent, it is generally declining. The distance from 50 percent or 49 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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