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NMI® at 57.6%; February Non-Manufacturing ISM® Report On Business®; Business Activity Index at 63.6%; New Orders Index at 61.2%; Employment Index at 55.2%TEMPE, Ariz., March 3, 2017 /PRNewswire/ -- Economic activity in the non-manufacturing sector grew in February for the 86th 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 57.6 percent, which is 1.1 percentage points higher than the January reading of 56.5 percent. This is the highest reading since October 2015 and represents continued growth in the non-manufacturing sector at a slightly faster rate. The Non-Manufacturing Business Activity Index increased to 63.6 percent, 3.3 percentage points higher than the January reading of 60.3 percent, which is the highest reading since February 2011, when the index registered 63.8 percent, reflecting growth for the 91st consecutive month, at a faster rate in February. The New Orders Index registered 61.2 percent, 2.6 percentage points higher than the reading of 58.6 percent in January. This is the highest reading since August 2015, when the index registered 62.7 percent. The Employment Index increased 0.5 percentage point in February to 55.2 percent from the January reading of 54.7 percent. The Prices Index decreased 1.3 percentage points from the January reading of 59 percent to 57.7 percent, indicating prices increased for the 11th consecutive month, at a slower rate in February. According to the NMI®, 16 non-manufacturing industries reported growth in February. The non-manufacturing sector reflected strong growth in February after cooling off in January. Respondents' comments continue to be mixed, with some uncertainty; however, the majority indicate a positive outlook on business conditions and the overall economy." 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. FEBRUARY 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 February NMI® indicates growth for the 91st consecutive month in the overall economy, and indicates expansion in the non-manufacturing sector for the 86th consecutive month. Nieves stated, "The past relationship between the NMI® and the overall economy indicates that the NMI® for February (57.6 percent) corresponds to a 3.4 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: Utilities; Mining; Other Services; Management of Companies & Support Services; Transportation & Warehousing; Finance & Insurance; Professional, Scientific & Technical Services; Accommodation & Food Services; Educational Services; Public Administration; Health Care & Social Assistance; Wholesale Trade; and Construction. The only industry reporting a decrease in business activity in February is Information.
New Orders The 13 industries reporting growth of new orders in February — listed in order — are: Utilities; Management of Companies & Support Services; Other Services; Agriculture, Forestry, Fishing & Hunting; Professional, Scientific & Technical Services; Public Administration; Accommodation & Food Services; Mining; Educational Services; Transportation & Warehousing; Health Care & Social Assistance; Finance & Insurance; and Construction. The four industries reporting contraction of new orders in February are: Real Estate, Rental & Leasing; Information; Retail Trade; and Wholesale Trade.
Employment The 11 industries reporting an increase in employment in February — listed in order — are: Accommodation & Food Services; Arts, Entertainment & Recreation; Retail Trade; Health Care & Social Assistance; Mining; Utilities; Wholesale Trade; Finance & Insurance; Management of Companies & Support Services; Construction; and Other Services. The four industries reporting a reduction in employment in February are: Real Estate, Rental & Leasing; Information; Transportation & Warehousing; and Professional, Scientific & Technical Services.
Supplier Deliveries The five industries reporting slower deliveries in February are: Agriculture, Forestry, Fishing & Hunting; Wholesale Trade; Retail Trade; Information; and Construction. The five industries reporting faster deliveries in February are: Utilities; Transportation & Warehousing; Accommodation & Food Services; Finance & Insurance; and Public Administration. Eight industries reported no change in supplier deliveries in February compared to January.
Inventories The eight industries reporting an increase in inventories in February — listed in order — are: Utilities; Wholesale Trade; Accommodation & Food Services; Public Administration; Transportation & Warehousing; Health Care & Social Assistance; Retail Trade; and Information. The five industries reporting decreases in inventories in February are: Management of Companies & Support Services; Professional, Scientific & Technical Services; Other Services; Finance & Insurance; and Construction.
Prices The 13 non-manufacturing industries reporting an increase in prices paid during the month of February — listed in order — are: Real Estate, Rental & Leasing; Wholesale Trade; Transportation & Warehousing; Accommodation & Food Services; Mining; Utilities; Health Care & Social Assistance; Construction; Retail Trade; Information; Professional, Scientific & Technical Services; Public Administration; and Finance & Insurance. The only industry reporting a decrease in prices paid for the month of February is Management of Companies & Support Services.
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 February — listed in order — are: Utilities; Management of Companies & Support Services; Professional, Scientific & Technical Services; Other Services; Public Administration; Construction; and Wholesale Trade. The four industries reporting a decrease in order backlogs in February are: Retail Trade; Health Care & Social Assistance; Information; and Transportation & Warehousing. Six industries reported no change in backlogs in February compared to January.
New Export Orders The seven industries reporting an increase in new export orders in February — listed in order — are: Utilities; Agriculture, Forestry, Fishing & Hunting; Mining; Transportation & Warehousing; Other Services; Professional, Scientific & Technical Services; and Wholesale Trade. The three industries reporting a decrease in new export orders in February are: Finance & Insurance; Information; and Retail Trade. Seven industries reported no change in new export orders in February compared to January.
Imports The three industries reporting an increase in imports for the month of February are: Other Services; Retail Trade; and Accommodation & Food Services. The three industries reporting a decrease in imports for the month of February are: Agriculture, Forestry, Fishing & Hunting; Transportation & Warehousing; and Wholesale Trade. Ten 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; Information; Wholesale Trade; Management of Companies & Support Services; Utilities; Health Care & Social Assistance; Retail Trade; Professional, Scientific & Technical Services; Transportation & Warehousing; Finance & Insurance; and Public Administration. The only industry reporting a feeling that their inventories are too low in February compared to January is 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 March 2017 data will be released at 10:00 a.m. (ET) on Wednesday, April 5, 2017. *Unless the NYSE is closed.
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