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NMI® at 59.9%; January Non-Manufacturing ISM® Report On Business®; Business Activity Index at 59.8%; New Orders Index at 62.7%; Employment Index at 61.6%This report reflects the recently completed annual adjustments to the seasonal factors used to calculate the indexes. TEMPE, Ariz., Feb. 5, 2018 /PRNewswire/ -- Economic activity in the non-manufacturing sector grew in January for the 96th 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 59.9 percent, which is 3.9 percentage points higher than the seasonally adjusted December reading of 56 percent. This represents continued growth in the non-manufacturing sector at a faster rate. The Non-Manufacturing Business Activity Index increased to 59.8 percent, 2 percentage points higher than the seasonally adjusted December reading of 57.8 percent, reflecting growth for the 102nd consecutive month, at a faster rate in January. The New Orders Index registered 62.7 percent, 8.2 percentage points higher than the seasonally adjusted reading of 54.5 percent in December. The Employment Index increased 5.3 percentage points in January to 61.6 percent from the seasonally adjusted December reading of 56.3 percent. The Prices Index increased by 2 percentage points from the seasonally adjusted December reading of 59.9 percent to 61.9 percent, indicating that prices increased in January for the 23rd consecutive month. According to the NMI®, 15 non-manufacturing industries reported growth. The non-manufacturing sector reflected strong growth in January after two consecutive months of pullback. Overall, the majority of respondents' comments are positive about business conditions and the economy. They also indicated that recent tax changes have had a positive impact on their respective businesses." 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. Indexes reflect newly released seasonal adjustment factors. 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. JANUARY 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 January NMI® indicates growth for the 101st consecutive month in the overall economy, and indicates expansion in the non-manufacturing sector for the 96th consecutive month. Nieves says, "The past relationship between the NMI® and the overall economy indicates that the NMI® for January (59.9 percent) corresponds to a 4.0 percent increase in real gross domestic product (GDP) on an annualized basis." NMI® HISTORY
Business Activity The 11 industries reporting growth of business activity in January — listed in order — are: Mining; Utilities; Arts, Entertainment & Recreation; Health Care & Social Assistance; Real Estate, Rental & Leasing; Public Administration; Transportation & Warehousing; Construction; Finance & Insurance; Retail Trade; and Management of Companies & Support Services. The seven industries reporting a decrease in business activity in January — listed in order — are: Information; Other Services; Accommodation & Food Services; Wholesale Trade; Professional, Scientific & Technical Services; Educational Services; and Agriculture, Forestry, Fishing & Hunting.
New Orders The 14 industries reporting growth of new orders in January — listed in order — are: Management of Companies & Support Services; Mining; Utilities; Arts, Entertainment & Recreation; Public Administration; Agriculture, Forestry, Fishing & Hunting; Construction; Retail Trade; Transportation & Warehousing; Health Care & Social Assistance; Real Estate, Rental & Leasing; Finance & Insurance; Accommodation & Food Services; and Wholesale Trade. The four industries reporting a decrease in business activity in January are: Information; Other Services; Professional, Scientific & Technical Services; and Educational Services.
Employment The 13 industries reporting an increase in employment in January — listed in order — are: Arts, Entertainment & Recreation; Management of Companies & Support Services; Retail Trade; Real Estate, Rental & Leasing; Educational Services; Utilities; Transportation & Warehousing; Construction; Wholesale Trade; Health Care & Social Assistance; Public Administration; Finance & Insurance; and Other Services. The two industries reporting a reduction in employment in January are: Information; and Mining.
Supplier Deliveries The 14 industries reporting slower deliveries in January — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Mining; Educational Services; Wholesale Trade; Management of Companies & Support Services; Accommodation & Food Services; Construction; Other Services; Transportation & Warehousing; Retail Trade; Finance & Insurance; Health Care & Social Assistance; Public Administration; and Information. The only industry reporting faster deliveries in January is Professional, Scientific & Technical Services.
Inventories The five industries reporting an increase in inventories in January are: Finance & Insurance; Real Estate, Rental & Leasing; Health Care & Social Assistance; Public Administration; and Transportation & Warehousing. The six industries reporting decreases in inventories in January — listed in order — are: Accommodation & Food Services; Construction; Professional, Scientific & Technical Services; Utilities; Information; and Retail Trade.
Prices The 15 non-manufacturing industries reporting an increase in prices paid during the month of January — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Wholesale Trade; Construction; Mining; Transportation & Warehousing; Finance & Insurance; Accommodation & Food Services; Utilities; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Other Services; Public Administration; Retail Trade; Information; and Health Care & Social Assistance. The only industry reporting a decrease in prices paid during the month of January 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 January — listed in order — are: Utilities; Finance & Insurance; Management of Companies & Support Services; Accommodation & Food Services; Construction; Public Administration; and Professional, Scientific & Technical Services. The five industries reporting a decrease in order backlogs in January are: Other Services; Information; Health Care & Social Assistance; Transportation & Warehousing; and Wholesale Trade.
New Export Orders The 10 industries reporting an increase in new export orders in January — listed in order — are: Construction; Mining; Management of Companies & Support Services; Real Estate, Rental & Leasing; Public Administration; Information; Accommodation & Food Services; Transportation & Warehousing; Wholesale Trade; and Professional, Scientific & Technical Services. The only industry reporting a decrease in exports is Retail Trade.
Imports The eight industries reporting an increase in imports for the month of January — listed in order — are: Other Services; Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Mining; Health Care & Social Assistance; Accommodation & Food Services; Wholesale Trade; and Construction. The two industries reporting a decrease in imports in the month of January are: Information; and Retail Trade. Six industries reported no change in January compared to December.
Inventory Sentiment The eight industries reporting a feeling that their inventories were too high in January — listed in order — are: Mining; Utilities; Construction; Information; Wholesale Trade; Other Services; Finance & Insurance; and Health Care & Social Assistance. The three industries reporting a feeling that their inventories were too low in January compared with December are: Management of Companies & Support Services; Retail Trade; and Professional, Scientific & Technical 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 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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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 February 2018 data will be released at 10:00 a.m. ET on Monday, March 5, 2018. *Unless the NYSE is closed.
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