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NMI® at 56.9%; February Non-Manufacturing ISM® Report On Business®; Business Activity Index at 59.4%; New Orders Index at 56.7%; Employment Index at 56.4%DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report's information reflects the entire United States, while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of February 2015. TEMPE, Ariz., March 4, 2015 /PRNewswire/ -- Economic activity in the non-manufacturing sector grew in February for the 61st 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 56.9 percent in February, 0.2 percentage point higher than the January reading of 56.7 percent. This represents continued growth in the non-manufacturing sector. The Non-Manufacturing Business Activity Index decreased to 59.4 percent, which is 2.1 percentage points lower than the January reading of 61.5 percent, reflecting growth for the 67th consecutive month at a slower rate. The New Orders Index registered 56.7 percent, 2.8 percentage points lower than the reading of 59.5 percent registered in January. The Employment Index increased 4.8 percentage points to 56.4 percent from the January reading of 51.6 percent and indicates growth for the 12th consecutive month. The Prices Index increased 4.2 percentage points from the January reading of 45.5 percent to 49.7 percent, indicating prices contracted in February for the third consecutive month. According to the NMI®, 14 non-manufacturing industries reported growth in February. Comments from respondents have increased in regards to the affects of the reduction in fuel costs and the impact of the West Coast port labor issues on the continuity of supply. Overall, supply managers feel mostly positive about the direction of the economy." INDUSTRY PERFORMANCE The 14 non-manufacturing industries reporting growth in February — listed in order — are: Accommodation & Food Services; Wholesale Trade; Real Estate, Rental & Leasing; Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Utilities; Management of Companies & Support Services; Finance & Insurance; Public Administration; Educational Services; Retail Trade; Professional, Scientific & Technical Services; Health Care & Social Assistance; and Information. The four industries reporting contraction in February are: Mining; Construction; Other Services; and Arts, Entertainment & Recreation. WHAT RESPONDENTS ARE SAYING ...
*Non-Manufacturing ISM® Report On Business® data is seasonally adjusted for 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. FEBRUARY 2015 NON-MANUFACTURING INDEX SUMMARIES NMI® An NMI® in excess of 48.7 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the February NMI® indicates growth for the 67th consecutive month in the overall economy, and indicates expansion in the non-manufacturing sector for the 61st consecutive month. Nieves stated, "The past relationship between the NMI® and the overall economy indicates that the NMI® for February (56.9 percent) corresponds to a 3.5 percent increase in real gross domestic product (GDP) on an annualized basis." NMI® HISTORY
Business Activity The 13 industries reporting growth of business activity in February — listed in order — are: Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Utilities; Real Estate, Rental & Leasing; Wholesale Trade; Management of Companies & Support Services; Arts, Entertainment & Recreation; Accommodation & Food Services; Finance & Insurance; Educational Services; Public Administration; Information; and Health Care & Social Assistance. The four industries reporting a decrease in business activity in February are: Construction; Other Services; Professional, Scientific & Technical Services; and Retail Trade.
New Orders The 11 industries reporting growth of new orders in February — listed in order — are: Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Utilities; Wholesale Trade; Accommodation & Food Services; Information; Finance & Insurance; Management of Companies & Support Services; Educational Services; and Public Administration. The four industries reporting contraction of new orders in February are: Mining; Construction; Retail Trade; and Health Care & Social Assistance.
Employment The 11 industries reporting an increase in employment in February — listed in order — are: Wholesale Trade; Accommodation & Food Services; Retail Trade; Management of Companies & Support Services; Professional, Scientific & Technical Services; Construction; Other Services; Utilities; Public Administration; Health Care & Social Assistance; and Finance & Insurance. The four industries reporting a reduction in employment in February are: Mining; Information; Arts, Entertainment & Recreation; and Transportation & Warehousing.
Supplier Deliveries The nine industries reporting slower deliveries in February — listed in order — are: Accommodation & Food Services; Information; Real Estate, Rental & Leasing; Wholesale Trade; Construction; Health Care & Social Assistance; Retail Trade; Professional, Scientific & Technical Services; and Public Administration. The only industry reporting faster deliveries in February is Mining. Eight industries reported no change in supplier deliveries in February compared to January.
Inventories The 11 industries reporting an increase in inventories in February — listed in order — are: Mining; Real Estate, Rental & Leasing; Management of Companies & Support Services; Other Services; Information; Finance & Insurance; Transportation & Warehousing; Accommodation & Food Services; Construction; Health Care & Social Assistance; and Wholesale Trade. The four industries reporting decreases in inventories in February are: Arts, Entertainment & Recreation; Retail Trade; Public Administration; and Utilities.
Prices The eight non-manufacturing industries reporting an increase in prices paid during the month of February — listed in order — are: Retail Trade; Wholesale Trade; Accommodation & Food Services; Information; Management of Companies & Support Services; Health Care & Social Assistance; Finance & Insurance; and Construction. The five industries reporting a decrease in prices paid for the month of February are: Mining; Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Utilities; and Public Administration.
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 February — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Educational Services; Accommodation & Food Services; Information; Real Estate, Rental & Leasing; Public Administration; Wholesale Trade; Finance & Insurance; and Construction. The four industries reporting a decrease in order backlogs in February are: Mining; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Retail Trade.
New Export Orders The five industries reporting an increase in new export orders in February are: Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Information; Finance & Insurance; and Wholesale Trade. The two industries reporting a decrease in export orders in February are: Arts, Entertainment & Recreation; and Retail Trade. Eight industries reported no change in new export orders in February compared to January.
Imports The six industries reporting an increase in imports for the month of February — listed in order — are: Real Estate, Rental & Leasing; Accommodation & Food Services; Information; Public Administration; Agriculture, Forestry, Fishing & Hunting; and Construction. The four industries reporting a decrease in imports for the month of February are: Arts, Entertainment & Recreation; Retail Trade; Utilities; and Wholesale Trade. Eight industries reported no change in imports in February compared to January.
Inventory Sentiment The 11 industries reporting a feeling that their inventories are too high in February — listed in order — are: Mining; Management of Companies & Support Services; Arts, Entertainment & Recreation; Finance & Insurance; Other Services; Public Administration; Wholesale Trade; Utilities; Accommodation & Food Services; Information; and Health Care & Social Assistance. The two industries reporting a feeling that their inventories are too low are: Transportation & Warehousing; and Professional, Scientific & Technical Services.
About This Report 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 in that index 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® in excess of 48.7 percent, over a period of time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 48.7 percent, it is generally declining. The distance from 50 percent or 48.7 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. 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.ism.ws on the third business day* of every month after 10:00 a.m. (ET). The next Non-Manufacturing ISM® Report On Business® featuring the March 2015 data will be released at 10:00 a.m. (ET) on Monday, April 6, 2015. *Unless the NYSE is closed.
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