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NMI® at 55.5%; April Non-Manufacturing ISM® Report On Business®Business Activity Index at 59.5%; New Orders Index at 58.1%; Employment Index at 53.7% TEMPE, Ariz., May 3, 2019 /PRNewswire/ -- Economic activity in the non-manufacturing sector grew in April for the 111th 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 55.5 percent, which is 0.6 percentage point lower than the March reading of 56.1 percent. This represents continued growth in the non-manufacturing sector, at a slightly slower rate. The Non-Manufacturing Business Activity Index increased to 59.5 percent, 2.1 percentage points higher than the March reading of 57.4 percent, reflecting growth for the 117th consecutive month, at a faster rate in April. The New Orders Index registered 58.1 percent; 0.9 percentage point lower than the reading of 59 percent in March. The Employment Index decreased 2.2 percentage points in April to 53.7 percent from the March reading of 55.9 percent. The Prices Index decreased 3 percentage points from the March reading of 58.7 percent to 55.7 percent, indicating that prices increased in April for the 23rd consecutive month. According to the NMI®, 15 non-manufacturing industries reported growth. The non-manufacturing sector has experienced an uptick in business activity, but in general, there has been a leveling off. Respondents are still mostly optimistic about overall business conditions, but concerns remain about employment resources." 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 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. APRIL 2019 NON-MANUFACTURING INDEX SUMMARIES NMI® An NMI® above 48.6 percent, over time, generally indicates an expansion of the overall economy. Therefore, the April NMI® indicates growth for the 117th consecutive month in the overall economy and expansion in the non-manufacturing sector for the 111th consecutive month. Nieves says, "The past relationship between the NMI® and the overall economy indicates that the NMI® for April (55.5 percent) corresponds to a 2.4-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 April — listed in order — are: Accommodation & Food Services; Utilities; Construction; Public Administration; Professional, Scientific & Technical Services; Agriculture, Forestry, Fishing & Hunting; Transportation & Warehousing; Other Services; Health Care & Social Assistance; Management of Companies & Support Services; Educational Services; Wholesale Trade; Finance & Insurance; Mining; Real Estate, Rental & Leasing; and Information. The only industry reporting a decrease in April is Retail Trade.
New Orders The 15 industries reporting growth of new orders in April — listed in order — are: Accommodation & Food Services; Public Administration; Other Services; Health Care & Social Assistance; Utilities; Construction; Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Wholesale Trade; Professional, Scientific & Technical Services; Finance & Insurance; Educational Services; Mining; Information; and Transportation & Warehousing. The two industries reporting contraction in April are: Retail Trade; and Real Estate, Rental & Leasing.
Employment The 10 industries reporting an increase in employment in April — listed in order — are: Professional, Scientific & Technical Services; Agriculture, Forestry, Fishing & Hunting; Transportation & Warehousing; Management of Companies & Support Services; Wholesale Trade; Mining; Health Care & Social Assistance; Construction; Real Estate, Rental & Leasing; and Public Administration. The six industries reporting a reduction in employment in April — listed in order — are: Utilities; Retail Trade; Information; Other Services; Accommodation & Food Services; and Finance & Insurance.
Supplier Deliveries The six industries reporting slower deliveries in April — listed in order — are: Transportation & Warehousing; Utilities; Professional, Scientific & Technical Services; Other Services; Construction; and Information. The five industries reporting faster deliveries in April are: Real Estate, Rental & Leasing; Management of Companies & Support Services; Accommodation & Food Services; Finance & Insurance; and Wholesale Trade. Seven industries reported no change in supplier deliveries in April as compared to March.
Inventories The eight industries reporting an increase in inventories in April — listed in order — are: Other Services; Accommodation & Food Services; Utilities; Professional, Scientific & Technical Services; Information; Wholesale Trade; Finance & Insurance; and Public Administration. The five industries reporting a decrease in inventories are: Retail Trade; Construction; Transportation & Warehousing; Health Care & Social Assistance; and Real Estate, Rental & Leasing.
Prices Eleven non-manufacturing industries reported an increase in prices paid during the month of April, listed in the following order: Accommodation & Food Services; Transportation & Warehousing; Construction; Wholesale Trade; Retail Trade; Public Administration; Other Services; Health Care & Social Assistance; Finance & Insurance; Professional, Scientific & Technical Services; and Information. The only non-manufacturing industry reporting a decrease in prices paid during the month of April is Mining. Six industries reported no change in prices in April compared to March.
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 April — listed in order — are: Educational Services; Other Services; Real Estate, Rental & Leasing; Accommodation & Food Services; Transportation & Warehousing; Construction; Health Care & Social Assistance; Professional, Scientific & Technical Services; Information; and Mining. The four industries that reported a decrease in backlogs in April are: Retail Trade; Public Administration; Finance & Insurance; and Wholesale Trade.
New Export Orders The eight industries reporting an increase in new export orders in April — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Wholesale Trade; Construction; Mining; Professional, Scientific & Technical Services; Finance & Insurance; and Information. No industry reported a decrease in exports for the month of April. Eight industries reported no change in April compared to March.
Imports The seven industries reporting an increase in imports for the month of April are: Agriculture, Forestry, Fishing & Hunting; Finance & Insurance; Accommodation & Food Services; Other Services; Mining; Professional, Scientific & Technical Services; and Wholesale Trade. The two industries reporting a decrease in imports in the month of April are: Information; and Retail Trade. Nine industries reported no change in imports in April as compared to March.
Inventory Sentiment The eight industries reporting sentiment that their inventories were too high in April — listed in order — are: Wholesale Trade; Information; Mining; Utilities; Construction; Management of Companies & Support Services; Public Administration; and Health Care & Social Assistance. The two industries reporting a feeling that their inventories were too low in April are: Transportation & Warehousing; and Other 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 48.6 percent, over time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 48.6 percent, it is generally declining. The distance from 50 percent or 48.6 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 May 2019 data will be released at 10:00 a.m. ET on Wednesday, June 5, 2019. *Unless the New York Stock Exchange is closed.
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