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NMI® at 60.7%; November Non-Manufacturing ISM® Report On Business®Business Activity Index at 65.2%; New Orders Index at 62.5%; Employment Index at 58.4% TEMPE, Ariz., Dec. 6, 2018 /PRNewswire/ -- Economic activity in the non-manufacturing sector grew in November for the 106th 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 60.7 percent, which is 0.4 percentage point higher than the October reading of 60.3 percent. This represents continued growth in the non-manufacturing sector, at a slightly faster rate. The Non-Manufacturing Business Activity Index increased to 65.2 percent, 2.7 percentage points higher than the October reading of 62.5 percent, reflecting growth for the 112th consecutive month, at a faster rate in November. The New Orders Index registered 62.5 percent, 1 percentage point higher than the reading of 61.5 percent in October. The Employment Index decreased 1.3 percentage points in November to 58.4 percent from the October reading of 59.7 percent. The Prices Index rose 2.6 percentage points from the October reading of 61.7 percent to 64.3 percent, indicating that prices increased in November for the 33rd consecutive month. According to the NMI®, 17 non-manufacturing industries reported growth. The non-manufacturing sector continued to reflect strong growth in November. However, concerns persist about employment resources and the impact of tariffs. Respondents remain positive about current business conditions and the direction of the economy." INDUSTRY PERFORMANCE The 17 non-manufacturing industries reporting growth in November — listed in order — are: Educational Services; Professional, Scientific & Technical Services; Health Care & Social Assistance; Transportation & Warehousing; Construction; Wholesale Trade; Real Estate, Rental & Leasing; Management of Companies & Support Services; Information; Finance & Insurance; Retail Trade; Other Services; Mining; Accommodation & Food Services; Public Administration; Arts, Entertainment & Recreation; and Utilities. The only industry reporting a decrease in November 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 Indexes. 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. NOVEMBER 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 November NMI® indicates growth for the 111th consecutive month in the overall economy and expansion in the non-manufacturing sector for the 106th consecutive month. Nieves says, "The past relationship between the NMI® and the overall economy indicates that the NMI® for November (60.7 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 November — listed in order — are: Health Care & Social Assistance; Professional, Scientific & Technical Services; Educational Services; Real Estate, Rental & Leasing; Transportation & Warehousing; Construction; Finance & Insurance; Information; Wholesale Trade; Utilities; Public Administration; Mining; Management of Companies & Support Services; Retail Trade; Other Services; and Accommodation & Food Services. The only industry reporting a decrease in November is Agriculture, Forestry, Fishing & Hunting.
New Orders The 15 industries reporting growth of new orders in November — listed in order — are: Professional, Scientific & Technical Services; Educational Services; Real Estate, Rental & Leasing; Transportation & Warehousing; Mining; Management of Companies & Support Services; Health Care & Social Assistance; Other Services; Arts, Entertainment & Recreation; Retail Trade; Wholesale Trade; Construction; Information; Finance & Insurance; and Public Administration. The only industry reporting a decrease in November is Agriculture, Forestry, Fishing & Hunting.
Employment The 14 industries reporting an increase in employment in November — listed in order — are: Educational Services; Transportation & Warehousing; Professional, Scientific & Technical Services; Health Care & Social Assistance; Management of Companies & Support Services; Construction; Real Estate, Rental & Leasing; Retail Trade; Wholesale Trade; Accommodation & Food Services; Information; Finance & Insurance; Other Services; and Mining. The two industries reporting a reduction in employment in November are: Utilities; and Public Administration.
Supplier Deliveries The 12 industries reporting slower deliveries in November — listed in order — are: Construction; Utilities; Educational Services; Health Care & Social Assistance; Wholesale Trade; Public Administration; Information; Other Services; Transportation & Warehousing; Accommodation & Food Services; Professional, Scientific & Technical Services; and Finance & Insurance. The only industry reporting faster deliveries in November is Real Estate, Rental & Leasing.
Inventories The 11 industries reporting an increase in inventories in November — listed in order — are: Retail Trade; Other Services; Wholesale Trade; Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Utilities; Finance & Insurance; Public Administration; Transportation & Warehousing; and Health Care & Social Assistance. The three industries reporting a decrease in inventories are: Real Estate, Rental & Leasing; Construction; and Information.
Prices All 18 non-manufacturing industries reporting an increase in prices paid during the month of November, listed in the following order are: Transportation & Warehousing; Management of Companies & Support Services; Information; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Wholesale Trade; Construction; Public Administration; Retail Trade; Arts, Entertainment & Recreation; Finance & Insurance; Educational Services; Real Estate, Rental & Leasing; Utilities; Mining; Health Care & Social Assistance; Other Services; and Professional, Scientific & Technical 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 10 industries reporting an increase in order backlogs in November — listed in order — are: Educational Services; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Construction; Public Administration; Transportation & Warehousing; Health Care & Social Assistance; Information; Wholesale Trade; and Management of Companies & Support Services. The two industries that reported a decrease in backlogs are: Other Services; and Finance & Insurance.
New Export Orders The seven industries reporting an increase in new export orders in November — listed in order — are: Accommodation & Food Services; Construction; Other Services; Professional, Scientific & Technical Services; Information; Transportation & Warehousing; and Health Care & Social Assistance. The only industry reporting a decrease in exports for the month of November is Management of Companies & Support Services. Nine industries reported no change in November.
Imports The six industries reporting an increase in imports for the month of November — listed in order — are: Management of Companies & Support Services; Wholesale Trade; Retail Trade; Accommodation & Food Services; Professional, Scientific & Technical Services; and Transportation & Warehousing. The three industries reporting a decrease in imports in the month of November are: Utilities; Construction and Information. Eight industries reported no change in November.
Inventory Sentiment The 10 industries reporting a feeling that their inventories were too high in November — listed in order — are: Mining; Wholesale Trade; Information; Utilities; Management of Companies & Support Services; Construction; Retail Trade; Public Administration; Professional, Scientific & Technical Services; and Health Care & Social Assistance. The two industries reporting a feeling that their inventories were too low in November are: Other Services; and Transportation & Warehousing.
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, data streams, time-series variables, fonts, icons, link buttons, wallpaper, desktop themes, online postcards, montages, mashups 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 December 2018 data will be released at 10:00 a.m. ET on Monday, January 7, 2019. *Unless the New York Stock Exchange is closed.
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