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NMI® at 60.1%; October Non-Manufacturing ISM® Report On Business®Business Activity Index at 62.2%; New Orders Index at 62.8%; Employment Index at 57.5% TEMPE, Ariz., Nov. 3, 2017 /PRNewswire/ -- Economic activity in the non-manufacturing sector grew in October for the 94th 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 60.1 percent, which is 0.3 percentage point higher than the September reading of 59.8 percent. This represents continued growth in the non-manufacturing sector at a slightly faster rate. This is the highest NMI® reading since the index's debut in 2008. The highest reading among pre-2008 composite index calculations is 61.3 percent in August 2005. The Non-Manufacturing Business Activity Index increased to 62.2 percent, 0.9 percentage point higher than the September reading of 61.3 percent, reflecting growth for the 99th consecutive month, at a slightly faster rate in October. The New Orders Index registered 62.8 percent, 0.2 percentage point lower than the reading of 63 percent in September. The Employment Index increased 0.7 percentage point in October to 57.5 percent from the September reading of 56.8 percent. The Prices Index decreased by 3.6 percentage points from the September reading of 66.3 percent to 62.7 percent, indicating prices increased in October for the fifth consecutive month. According to the NMI®, 16 non-manufacturing industries reported growth. The non-manufacturing sector has reflected the third consecutive month of strong growth. Respondent comments continue to indicate a positive outlook for business conditions, and the economy as we begin the fourth quarter." 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. **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. *Indicates both up and down in price. OCTOBER 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 October NMI® indicates growth for the 99th consecutive month in the overall economy, and indicates expansion in the non-manufacturing sector for the 94th consecutive month. Nieves says, "The past relationship between the NMI® and the overall economy indicates that the NMI® for October (60.1 percent) corresponds to a 4.3 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 October — listed in order — are: Utilities; Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Other Services; Construction; Transportation & Warehousing; Information; Retail Trade; Public Administration; Finance & Insurance; Health Care & Social Assistance; Mining; Management of Companies & Support Services; Professional, Scientific & Technical Services; Wholesale Trade; and Accommodation & Food Services. The only industry reporting a decrease in business activity in October is Educational Services.
New Orders The 16 industries reporting growth of new orders in October — listed in order — are: Construction; Utilities; Transportation & Warehousing; Other Services; Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Real Estate, Rental & Leasing; Retail Trade; Finance & Insurance; Health Care & Social Assistance; Mining; Wholesale Trade; Professional, Scientific & Technical Services; Information; Accommodation & Food Services; and Public Administration. The two industries reporting a decrease in business activity in October are: Educational Services; and Arts, Entertainment & Recreation.
Employment The 13 industries reporting an increase in employment in October — listed in order — are: Mining; Educational Services; Finance & Insurance; Real Estate, Rental & Leasing; Transportation & Warehousing; Wholesale Trade; Management of Companies & Support Services; Public Administration; Accommodation & Food Services; Retail Trade; Construction; Professional, Scientific & Technical Services; and Health Care & Social Assistance. The three industries reporting a reduction in employment in October are: Utilities; Information; and Other Services.
Supplier Deliveries The 14 industries reporting slower deliveries in October — listed in order — are: Wholesale Trade; Construction; Agriculture, Forestry, Fishing & Hunting; Mining; Transportation & Warehousing; Retail Trade; Management of Companies & Support Services; Information; Real Estate, Rental & Leasing; Other Services; Public Administration; Health Care & Social Assistance; Accommodation & Food Services; and Professional, Scientific & Technical Services. No industry reported faster deliveries in October.
Inventories The seven industries reporting an increase in inventories in October — listed in order — are: Utilities; Wholesale Trade; Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Retail Trade; and Finance & Insurance. The six industries reporting decreases in inventories in October — listed in order — are: Arts, Entertainment & Recreation; Accommodation & Food Services; Professional, Scientific & Technical Services; Mining; Public Administration; and Construction.
Prices The 13 non-manufacturing industries reporting an increase in prices paid during the month of October — listed in order — are: Construction; Wholesale Trade; Public Administration; Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; Real Estate, Rental & Leasing; Other Services; Retail Trade; Information; Mining; Transportation & Warehousing; Professional, Scientific & Technical Services; and Finance & Insurance. The four industries reporting a decrease in prices paid during the month of October are: Utilities; Accommodation & Food Services; Management of Companies & Support Services; and Health Care & Social Assistance.
NOTE: Commodities reported as up in price and down in price are listed in the commodities section of this report. Backlog of Orders The 10 industries reporting an increase in order backlogs in October — listed in order — are: Utilities; Management of Companies & Support Services; Other Services; Information; Mining; Public Administration; Finance & Insurance; Professional, Scientific & Technical Services; Construction; and Transportation & Warehousing. The only industry reporting a decrease in order backlogs in October is Health Care & Social Assistance.
New Export Orders The nine industries reporting an increase in new export orders in October — listed in order — are: Construction; Information; Retail Trade; Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Accommodation & Food Services; Public Administration; Transportation & Warehousing; and Professional, Scientific & Technical Services. The three industries reporting a decrease in export orders in October are: Health Care & Social Assistance; Utilities; and Wholesale Trade.
Imports The nine industries reporting an increase in imports for the month of October — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Other Services; Information; Public Administration; Wholesale Trade; Finance & Insurance; Retail Trade; and Transportation & Warehousing. The four industries reporting a decrease in imports in the month of October are: Health Care & Social Assistance; Accommodation & Food Services; Mining; and Professional, Scientific & Technical Services.
Inventory Sentiment The eight industries reporting a feeling that their inventories are too high in October — listed in order — are: Mining; Utilities; Wholesale Trade; Retail Trade; Information; Finance & Insurance; Health Care & Social Assistance; and Public Administration. No industry reported a feeling that their inventories are too low in October, compared with September. Nine industries reported no change in inventory sentiment in October compared to September.
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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Elliot Road, Suite 113, Tempe, AZ 85284-1556, or by emailing [email protected]; subject: Content Request. 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 November 2017 data will be released at 10:00 a.m. ET on Tuesday, December 5, 2017. *Unless the NYSE is closed.
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