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NMI® at 58.6%; May Non-Manufacturing ISM® Report On Business®Business Activity Index at 61.3%; New Orders Index at 60.5%; Employment Index at 54.1% TEMPE, Ariz., June 5, 2018 /PRNewswire/ -- Economic activity in the non-manufacturing sector grew in May for the 100th 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 58.6 percent, which is 1.8 percentage points higher than the April reading of 56.8 percent. This represents continued growth in the non-manufacturing sector at a faster rate. The Non-Manufacturing Business Activity Index increased to 61.3 percent, 2.2 percentage points higher than the April reading of 59.1 percent, reflecting growth for the 106th consecutive month, at a faster rate in May. The New Orders Index registered 60.5 percent, 0.5 percentage point higher than the reading of 60 percent in April. The Employment Index increased 0.5 percentage point in May to 54.1 percent from the April reading of 53.6 percent. The Prices Index increased by 2.5 percentage points from the April reading of 61.8 percent to 64.3 percent, indicating that prices increased in May for the 27th consecutive month. According to the NMI®, 14 non-manufacturing industries reported growth. The majority of respondents are optimistic about business conditions and the overall economy. There continue to be concerns about the uncertainty surrounding tariffs, trade agreements and the impact on cost of goods sold." INDUSTRY PERFORMANCE The 14 non-manufacturing industries reported growth in May — listed in order — are: Wholesale Trade; Mining; Real Estate, Rental & Leasing; Construction; Retail Trade; Management of Companies & Support Services; Professional, Scientific & Technical Services; Transportation & Warehousing; Public Administration; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Finance & Insurance; Utilities; and Other Services. The only industry reporting a decrease is Information. 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. MAY 2018 NON-MANUFACTURING INDEX SUMMARIES NMI® In May, the NMI® registered 58.6 percent, 1.8 percentage points higher than the 56.8 percent registered in April, indicating continued growth in the non-manufacturing sector for the 100th consecutive month. A reading above 50 percent indicates the non-manufacturing sector economy is generally expanding; below 50 percent indicates the non-manufacturing sector is generally contracting. An NMI® above 49 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the May NMI® indicates growth for the 105th consecutive month in the overall economy and expansion in the non-manufacturing sector for the 100th consecutive month. Nieves says, "The past relationship between the NMI® and the overall economy indicates that the NMI® for May (58.6 percent) corresponds to a 3.5-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 May — listed in order — are: Wholesale Trade; Mining; Retail Trade; Real Estate, Rental & Leasing; Transportation & Warehousing; Utilities; Construction; Accommodation & Food Services; Professional, Scientific & Technical Services; Management of Companies & Support Services; Finance & Insurance; Public Administration; and Other Services. The two industries reporting a decrease in business activity in May are: Information; and Agriculture, Forestry, Fishing & Hunting.
New Orders The 11 industries reporting growth of new orders in May — listed in order — are: Construction; Mining; Wholesale Trade; Real Estate, Rental & Leasing; Retail Trade; Finance & Insurance; Transportation & Warehousing; Public Administration; Professional, Scientific & Technical Services; Accommodation & Food Services; and Management of Companies & Support Services. The four industries reporting a decrease in new orders for the month of May are: Educational Services; Other Services; Information; and Agriculture, Forestry, Fishing & Hunting.
Employment The 11 industries reporting an increase in employment in May — listed in order — are: Mining; Wholesale Trade; Management of Companies & Support Services; Educational Services; Transportation & Warehousing; Retail Trade; Public Administration; Real Estate, Rental & Leasing; Construction; Professional, Scientific & Technical Services; and Other Services. The three industries reporting a reduction in employment in May are: Accommodation & Food Services; Finance & Insurance; and Information.
Supplier Deliveries The 13 industries reporting slower deliveries in May — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Wholesale Trade; Information; Real Estate, Rental & Leasing; Management of Companies & Support Services; Accommodation & Food Services; Professional, Scientific & Technical Services; Mining; Public Administration; Construction; Other Services; Retail Trade; and Finance & Insurance. The only industry reporting faster deliveries in May is Transportation & Warehousing.
Inventories The 10 industries reporting an increase in inventories in May — listed in order — are: Utilities; Real Estate, Rental & Leasing; Wholesale Trade; Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Retail Trade; Construction; Accommodation & Food Services; Transportation & Warehousing; and Finance & Insurance. The four industries reporting a decrease in inventories in May are: Professional, Scientific & Technical Services; Other Services; Public Administration; and Information.
Prices The 15 non-manufacturing industries reporting an increase in prices paid during the month of May — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Construction; Mining; Wholesale Trade; Management of Companies & Support Services; Arts, Entertainment & Recreation; Utilities; Public Administration; Information; Transportation & Warehousing; Retail Trade; Accommodation & Food Services; Other Services; Professional, Scientific & Technical Services; and Finance & Insurance. No industries reported a decrease in prices in May compared to April.
NOTE: Commodities reported as up in price and down in price are listed in the commodities section of this report. Backlog of Orders The 11 industries reporting an increase in order backlogs in May — listed in order — are: Educational Services; Accommodation & Food Services; Construction; Transportation & Warehousing; Finance & Insurance; Management of Companies & Support Services; Wholesale Trade; Public Administration; Mining; Information; and Professional, Scientific & Technical Services. The two industries reporting a decrease in order backlogs in May are: Utilities; and Other Services.
New Export Orders The 10 industries reporting an increase in new export orders in May — listed in order — are: Public Administration; Mining; Construction; Other Services; Real Estate, Rental & Leasing; Retail Trade; Accommodation & Food Services; Wholesale Trade; Transportation & Warehousing; and Professional, Scientific & Technical Services. The only industry reporting a decrease in exports for the month of May is Management of Companies & Support Services.
Imports The six industries reporting an increase in imports for the month of May — listed in order — are: Construction; Mining; Transportation & Warehousing; Wholesale Trade; Professional, Scientific & Technical Services; and Retail Trade. The only industry reporting a decrease in imports in the month of May is Management of Companies & Support Services. Nine industries reported no change in imports in May compared to April.
Inventory Sentiment The nine industries reporting a feeling that their inventories were too high in May — listed in order — are: Wholesale Trade; Agriculture, Forestry, Fishing & Hunting; Information; Management of Companies & Support Services; Professional, Scientific & Technical Services; Utilities; Retail Trade; Accommodation & Food Services; and Construction. The only industry reporting a feeling that their inventories were too low in May compared with April is Public Administration.
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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