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NMI® at 56.9%; September Non-Manufacturing ISM® Report On Business®; Business Activity Index at 60.2%; New Orders Index at 56.7%; Employment Index at 58.3%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 September 2015. TEMPE, Ariz., Oct. 5, 2015 /PRNewswire/ -- Economic activity in the non-manufacturing sector grew in September for the 68th 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 September, 2.1 percentage points lower than the August reading of 59 percent. This represents continued growth in the non-manufacturing sector at a slower rate. The Non-Manufacturing Business Activity Index decreased to 60.2 percent, which is 3.7 percentage points lower than the August reading of 63.9 percent, reflecting growth for the 74th consecutive month at a slower rate. The New Orders Index registered 56.7 percent, 6.7 percentage points lower than the reading of 63.4 percent in August. The Employment Index increased 2.3 percentage points to 58.3 percent from the August reading of 56 percent and indicates growth for the 19th consecutive month. The Prices Index decreased 2.4 percentage points from the August reading of 50.8 percent to 48.4 percent, indicating prices decreased in September for the first time since February of this year. According to the NMI®, 13 non-manufacturing industries reported growth in September. There has been a cooling off in the rate of growth during the month of September. Also, the trend of lower costs and little pricing power continues as reflected in the contraction of the pricing index. Overall, respondents continue to remain positive about current business conditions." INDUSTRY PERFORMANCE The 13 non-manufacturing industries reporting growth in September — listed in order — are: Educational Services; Construction; Finance & Insurance; Health Care & Social Assistance; Utilities; Wholesale Trade; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Management of Companies & Support Services; Accommodation & Food Services; Information; Public Administration; and Transportation & Warehousing. The four industries reporting contraction in September are: Mining; Arts, Entertainment & Recreation; Retail Trade; and Other Services. 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. SEPTEMBER 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 September NMI® indicates growth for the 74th consecutive month in the overall economy, and indicates expansion in the non-manufacturing sector for the 68th consecutive month. Nieves stated, "The past relationship between the NMI® and the overall economy indicates that the NMI® for September (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 12 industries reporting growth of business activity in September — listed in order — are: Educational Services; Utilities; Construction; Finance & Insurance; Professional, Scientific & Technical Services; Real Estate, Rental & Leasing; Management of Companies & Support Services; Health Care & Social Assistance; Public Administration; Accommodation & Food Services; Wholesale Trade; and Transportation & Warehousing. The three industries reporting a decrease in business activity in September are: Other Services; Arts, Entertainment & Recreation; and Mining.
New Orders The 11 industries reporting growth of new orders in September — listed in order — are: Utilities; Construction; Finance & Insurance; Real Estate, Rental & Leasing; Wholesale Trade; Educational Services; Professional, Scientific & Technical Services; Health Care & Social Assistance; Information; Accommodation & Food Services; and Public Administration. The four industries reporting contraction of new orders in September are: Mining; Other Services; Transportation & Warehousing; and Retail Trade.
Employment The 10 industries reporting an increase in employment in September — listed in order — are: Educational Services; Health Care & Social Assistance; Management of Companies & Support Services; Finance & Insurance; Construction; Transportation & Warehousing; Other Services; Wholesale Trade; Information; and Accommodation & Food Services. The five industries reporting a reduction in employment in September are: Arts, Entertainment & Recreation; Mining; Real Estate, Rental & Leasing; Public Administration; and Retail Trade.
Supplier Deliveries The six industries reporting slower deliveries in September — listed in order — are: Real Estate, Rental & Leasing; Educational Services; Wholesale Trade; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Accommodation & Food Services. The five industries reporting faster deliveries in September are: Mining; Utilities; Information; Finance & Insurance; and Retail Trade. Seven industries listed no change in supplier deliveries in September compared to August.
Inventories The six industries reporting an increase in inventories in September — listed in order — are: Finance & Insurance; Utilities; Mining; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Public Administration. The seven industries reporting decreases in inventories in September — listed in order — are: Arts, Entertainment & Recreation; Educational Services; Other Services; Management of Companies & Support Services; Accommodation & Food Services; Retail Trade; and Construction.
Prices The six non-manufacturing industries reporting an increase in prices paid during the month of September — listed in order — are: Educational Services; Other Services; Finance & Insurance; Management of Companies & Support Services; Accommodation & Food Services; and Health Care & Social Assistance. The 10 industries reporting a decrease in prices paid for the month of September — listed in order — are: Mining; Agriculture, Forestry, Fishing & Hunting; Wholesale Trade; Utilities; Transportation & Warehousing; Public Administration; Professional, Scientific & Technical Services; Information; Construction; and Arts, Entertainment & Recreation.
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 September — listed in order — are: Construction; Finance & Insurance; Management of Companies & Support Services; Professional, Scientific & Technical Services; Public Administration; Wholesale Trade; Information; and Health Care & Social Assistance. The four industries reporting a decrease in order backlogs in September are: Arts, Entertainment & Recreation; Mining; Transportation & Warehousing; and Retail Trade.
New Export Orders The five industries reporting an increase in new export orders in September are: Utilities; Information; Accommodation & Food Services; Construction; and Wholesale Trade. The three industries reporting a decrease in new export orders in September are: Arts, Entertainment & Recreation; Mining; and Retail Trade. Eight industries reported no change in new export orders in September compared to August.
Imports The four industries reporting an increase in imports for the month of September are: Professional, Scientific & Technical Services; Accommodation & Food Services; Wholesale Trade; and Retail Trade. The two industries reporting a decrease in imports for the month of September are: Mining; and Transportation & Warehousing. Eleven industries listed no change in imports in September compared to August.
Inventory Sentiment The eight industries reporting a feeling that their inventories are too high in September — listed in order — are: Mining; Transportation & Warehousing; Other Services; Finance & Insurance; Wholesale Trade; Construction; Accommodation & Food Services; and Health Care & Social Assistance. The two industries reporting a decrease in imports for the month of September are: Information; and Utilities. Seven industries listed no change in inventory sentiment in September compared to August.
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 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® Founded in 1915 as the first supply management institute in the world, Institute for Supply Management® (ISM®) is committed to advancing the practice of supply chain management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. This year, ISM celebrates 100 years of leading, innovating and guiding the profession through the renowned ISM Report On Business®, highly regarded certification programs, and industry-standard training and educational resources. ISM is a not-for-profit organization with global influence, serving supply chain professionals in more than 90 countries. 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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. The full text version of the Non-Manufacturing ISM® Report On Business® is posted on ISM®'s website at www.instituteforsupplymanagement.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 October 2015 data will be released at 10:00 a.m. (ET) on Wednesday, November 4, 2015. *Unless the NYSE is closed.
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