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NMI® at 59.1%; June Non-Manufacturing ISM® Report On Business®Business Activity Index at 63.9%; New Orders Index at 63.2%; Employment Index at 53.6% TEMPE, Ariz., July 5, 2018 /PRNewswire/ -- Economic activity in the non-manufacturing sector grew in June for the 101st 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 59.1 percent, which is 0.5 percentage point higher than the May reading of 58.6 percent. This represents continued growth in the non-manufacturing sector at a slightly faster rate. The Non-Manufacturing Business Activity Index increased to 63.9 percent, 2.6 percentage points higher than the May reading of 61.3 percent, reflecting growth for the 107th consecutive month, at a faster rate in June. The New Orders Index registered 63.2 percent, 2.7 percentage points higher than the reading of 60.5 percent in May. The Employment Index decreased 0.5 percentage point in June to 53.6 percent from the May reading of 54.1 percent. The Prices Index decreased by 3.6 percentage points from the May reading of 64.3 percent to 60.7 percent, indicating that prices increased in June for the 28th consecutive month. According to the NMI®, 17 non-manufacturing industries reported growth. Respondents continue to be optimistic about business conditions and the overall economy. There is a continuing concern relating to tariffs, capacity constraints and delivery." INDUSTRY PERFORMANCE The 17 non-manufacturing industries reported growth in June — listed in order — are: Mining; Construction; Wholesale Trade; Retail Trade; Public Administration; Educational Services; Real Estate, Rental & Leasing; Management of Companies & Support Services; Transportation & Warehousing; Health Care & Social Assistance; Utilities; Finance & Insurance; Arts, Entertainment & Recreation; Other Services; Professional, Scientific & Technical Services; Information; and Accommodation & Food Services. The only industry reporting a decrease is Agriculture, Forestry, Fishing & Hunting. 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. JUNE 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 June NMI® indicates growth for the 106th consecutive month in the overall economy and expansion in the non-manufacturing sector for the 101st consecutive month. Nieves says, "The past relationship between the NMI® and the overall economy indicates that the NMI® for June (59.1 percent) corresponds to a 3.7 percent increase in real gross domestic product (GDP) on an annualized basis." NMI® HISTORY
Business Activity The 16 industries reporting growth of business activity in June — listed in order — are: Mining; Construction; Educational Services; Retail Trade; Public Administration; Wholesale Trade; Accommodation & Food Services; Real Estate, Rental & Leasing; Health Care & Social Assistance; Management of Companies & Support Services; Utilities; Finance & Insurance; Professional, Scientific & Technical Services; Other Services; Transportation & Warehousing; and Information. The only industry reporting a decrease in business activity in June is Agriculture, Forestry, Fishing & Hunting.
New Orders The 17 industries reporting growth of new orders in June — listed in order — are: Educational Services; Retail Trade; Wholesale Trade; Mining; Construction; Public Administration; Management of Companies & Support Services; Health Care & Social Assistance; Finance & Insurance; Other Services; Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Utilities; Real Estate, Rental & Leasing; Information; and Professional, Scientific & Technical Services. No industry reported a decrease in new orders for the month of June.
Employment The 12 industries reporting an increase in employment in June — listed in order — are: Arts, Entertainment & Recreation; Transportation & Warehousing; Public Administration; Mining; Construction; Real Estate, Rental & Leasing; Wholesale Trade; Retail Trade; Health Care & Social Assistance; Management of Companies & Support Services; Finance & Insurance; and Professional, Scientific & Technical Services. The three industries reporting a reduction in employment in June are: Accommodation & Food Services; Information; and Educational Services.
Supplier Deliveries The 10 industries reporting slower deliveries in June — listed in order — are: Mining; Wholesale Trade; Construction; Information; Utilities; Real Estate, Rental & Leasing; Public Administration; Professional, Scientific & Technical Services; Management of Companies & Support Services; and Health Care & Social Assistance. The four industries reporting faster deliveries in June are: Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Transportation & Warehousing; and Other Services.
Inventories The five industries reporting an increase in inventories in June are: Public Administration; Wholesale Trade; Information; Construction; and Retail Trade. The four industries reporting a decrease in inventories in June are: Finance & Insurance; Transportation & Warehousing; Professional, Scientific & Technical Services; and Health Care & Social Assistance. Seven industries reported no change in inventories in June compared to May.
Prices The 13 non-manufacturing industries reporting an increase in prices paid during the month of June — listed in order — are: Mining; Construction; Wholesale Trade; Other Services; Information; Public Administration; Utilities; Retail Trade; Management of Companies & Support Services; Transportation & Warehousing; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Finance & Insurance. The only industry reporting lower prices in June compared to May 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 nine industries reporting an increase in order backlogs in June — listed in order — are: Mining; Health Care & Social Assistance; Wholesale Trade; Information; Management of Companies & Support Services; Transportation & Warehousing; Construction; Professional, Scientific & Technical Services; and Public Administration. The two industries reporting a decrease in order backlogs in June are: Utilities; and Other Services.
New Export Orders The 11 industries reporting an increase in new export orders in June — listed in order — are: Finance & Insurance; Accommodation & Food Services; Agriculture, Forestry, Fishing & Hunting; Construction; Retail Trade; Mining; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Health Care & Social Assistance; Wholesale Trade; and Information. The only industry reporting a decrease in exports for the month of June is Other Services.
Imports The five industries reporting an increase in imports for the month of June are: Retail Trade; Construction; Health Care & Social Assistance; Mining; and Wholesale Trade. The five industries reporting a decrease in imports in the month of June are: Management of Companies & Support Services; Information; Public Administration; Professional, Scientific & Technical Services; and Agriculture, Forestry, Fishing & Hunting. Six industries reported no change in imports in June compared to May.
Inventory Sentiment The seven industries reporting a feeling that their inventories were too high in June — listed in order — are: Information; Construction; Wholesale Trade; Utilities; Health Care & Social Assistance; Mining; and Accommodation & Food Services. The two industries reporting a feeling that their inventories were too low in June compared with May are: Other Services and Professional, Scientific & Technical Services. Seven industries reported no change in inventory sentiment in June compared to May.
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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