TMCnet News
Services PMI® at 56.7%; September 2022 Services ISM® Report On Business®Business Activity Index at 59.1%; New Orders Index at 60.6%; Employment Index at 53%; Supplier Deliveries Index at 53.9% TEMPE, Ariz., Oct. 5, 2022 /PRNewswire/ -- Economic activity in the services sector grew in September for the 28th month in a row — with the Services PMI® registering 56.7 percent — say the nation's purchasing and supply executives in the latest Services 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®) Services Business Survey Committee: "In September, the Services PMI® registered 56.7 percent, 0.2 percentage point lower than August's reading of 56.9 percent. The Business Activity Index registered 59.1 percent, a decrease of 1.8 percentage points compared to the reading of 60.9 percent in August. The New Orders Index figure of 60.6 percent is 1.2 percentage points lower than the August reading of 61.8 percent. "The Supplier Deliveries Index registered 53.9 percent, 0.6 percentage point lower than the 54.5 percent reported in August. (Supplier Deliveries is the only ISM® Report On Business® index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.) "The Prices Index decreased for the fifth consecutive month in September, down 2.8 percentage points to 68.7 percent. Services businesses still continue to struggle to replenish their stocks, as the Inventories Index contracted for the fourth consecutive month; the reading of 44.1 percent is down 2.1 percentage points from August's figure of 46.2 percent. The Inventory Sentiment Index (47.2 percent, up 0.1 percentage point from August's reading of 47.1 percent) contracted for the second consecutive month in September." Nieves continues, "According to the Services PMI®, 15 industries reported growth. The composite index indicated growth for the 28th consecutive month after a two-month contraction in April and May 2020. Growth continues — at a slightly slower rate — for the services sector, which has expanded for all but two of the last 152 months. The services sector had a slight pullback in growth for the month of September due to decreases in business activity and new orders. Employment improved and supplier deliveries slowed at a slightly slower rate. Based on comments from Business Survey Committee respondents, there have been improvements regarding supply chain efficiency, operating capacity and materials availability; however, performance remains less than ideal. Employment continued to improve despite the restricted labor market." INDUSTRY PERFORMANCE The 15 services industries reporting growth in September — listed in order — are: Mining; Other Services; Educational Services; Agriculture, Forestry, Fishing & Hunting; Public Administration; Retail Trade; Wholesale Trade; Information; Utilities; Professional, Scientific & Technical Services; Health Care & Social Assistance; Finance & Insurance; Real Estate, Rental & Leasing; Construction; and Management of Companies & Support Services. The three industries reporting a decrease in the month of September are: Accommodation & Food Services; Arts, Entertainment & Recreation; and Transportation & Warehousing. WHAT RESPONDENTS ARE SAYING
Services ISM® Report On Business® data is seasonally adjusted for the Business Activity, New Orders, Employment and Prices indexes. Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Inventories 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. *Indicates both up and down in price. SEPTEMBER 2022 SERVICES INDEX SUMMARIES Services PMI® A Services PMI® above 50.1 percent, over time, generally indicates an expansion of the overall economy. Therefore, the September Services PMI® indicates the overall economy has followed the same path as the services sector: expansion for 28 straight months following two months of contraction and a preceding period of 122 months of growth. Nieves says, "The past relationship between the Services PMI® and the overall economy indicates that the Services PMI® for September (56.7 percent) corresponds to a 2.4-percent increase in real gross domestic product (GDP) on an annualized basis." SERVICES PMI® HISTORY
Business Activity The 14 industries reporting an increase in business activity for the month of September — listed in order — are: Mining; Information; Other Services; Educational Services; Wholesale Trade; Health Care & Social Assistance; Finance & Insurance; Utilities; Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Public Administration; Professional, Scientific & Technical Services; Retail Trade; and Transportation & Warehousing. The two industries reporting a decrease in business activity for the month of September are: Accommodation & Food Services; and Arts, Entertainment & Recreation.
New Orders Thirteen industries reported growth of new orders in September, in the following order: Mining; Other Services; Retail Trade; Educational Services; Real Estate, Rental & Leasing; Information; Public Administration; Wholesale Trade; Health Care & Social Assistance; Agriculture, Forestry, Fishing & Hunting; Professional, Scientific & Technical Services; Finance & Insurance; and Utilities. The two industries reporting a decrease in new orders in September are: Arts, Entertainment & Recreation; and Transportation & Warehousing.
Employment The 10 industries reporting an increase in employment in September — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Mining; Retail Trade; Construction; Public Administration; Professional, Scientific & Technical Services; Educational Services; Other Services; Wholesale Trade; and Transportation & Warehousing. The two industries reporting a decrease in employment in September are: Real Estate, Rental & Leasing; and Accommodation & Food Services. Six industries reported no change in Employment in September.
Supplier Deliveries The 10 industries reporting slower deliveries in September — listed in order — are: Mining; Other Services; Utilities; Public Administration; Real Estate, Rental & Leasing; Management of Companies & Support Services; Professional, Scientific & Technical Services; Educational Services; Finance & Insurance; and Wholesale Trade. The six industries reporting faster supplier deliveries for the month of September — listed in order — are: Arts, Entertainment & Recreation; Retail Trade; Accommodation & Food Services; Transportation & Warehousing; Information; and Health Care & Social Assistance.
Inventories The eight industries reporting an increase in inventories in September — listed in order — are: Accommodation & Food Services; Agriculture, Forestry, Fishing & Hunting; Mining; Utilities; Information; Wholesale Trade; Public Administration; and Transportation & Warehousing. The 10 industries reporting a decrease in inventories in September — listed in order — are: Real Estate, Rental & Leasing; Finance & Insurance; Other Services; Arts, Entertainment & Recreation; Management of Companies & Support Services; Retail Trade; Health Care & Social Assistance; Educational Services; Construction; and Professional, Scientific & Technical Services.
Prices All 18 services industries reported an increase in prices paid during the month of September, in the following order: Arts, Entertainment & Recreation; Public Administration; Health Care & Social Assistance; Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Utilities; Real Estate, Rental & Leasing; Finance & Insurance; Information; Retail Trade; Construction; Other Services; Mining; Professional, Scientific & Technical Services; Educational Services; Accommodation & Food Services; Wholesale Trade; and Transportation & Warehousing.
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 September — listed in order — are: Information; Management of Companies & Support Services; Finance & Insurance; Mining; Other Services; Educational Services; Utilities; Professional, Scientific & Technical Services; Construction; and Health Care & Social Assistance. The four industries reporting a decrease in order backlogs in September are: Retail Trade; Agriculture, Forestry, Fishing & Hunting; Public Administration; and Transportation & Warehousing.
New Export Orders The six industries reporting an increase in new export orders in September — listed in order — are: Management of Companies & Support Services; Real Estate, Rental & Leasing; Retail Trade; Information; Mining; and Educational Services. The three industries reporting a decrease in new export orders in September are: Other Services; Transportation & Warehousing; and Wholesale Trade. Nine industries indicated no change in new export orders in September.
Imports The six industries reporting an increase in imports for the month of September — listed in order — are: Mining; Accommodation & Food Services; Educational Services; Information; Construction; and Wholesale Trade. The three industries that reported a decrease in imports in September are: Other Services; Professional, Scientific & Technical Services; and Health Care & Social Assistance. Nine industries reported no change in imports in September.
Inventory Sentiment The five industries reporting sentiment that their inventories were too high in September are: Arts, Entertainment & Recreation; Retail Trade; Construction; Wholesale Trade; and Health Care & Social Assistance. The seven industries reporting a feeling that their inventories were too low in September — listed in order — are: Real Estate, Rental & Leasing; Management of Companies & Support Services; Transportation & Warehousing; Information; Public Administration; Professional, Scientific & Technical Services; and Utilities. Six industries reported no change in September.
About This Report The data presented herein is obtained from a survey of supply executives in the services sector 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 Services PMI® 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 services 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. A Services PMI® above 50.1 percent, over time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 50.1 percent, it is generally declining. The distance from 50 percent or 50.1 percent is indicative of the strength of the expansion or decline. The Services ISM® Report On Business® survey is sent out to Services Business Survey Committee respondents the first part of each month. Respondents are asked to ONLY report on U.S. operations 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 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 Services 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. You shall not either directly or through the use of any device, software, internet site, web-based service, or other means remove, alter, bypass, avoid, interfere with, or circumvent any copyright, trademark, or other proprietary notices marked on the Content or any digital rights management mechanism, device, or other content protection or access control measure associated with the Content including geo-filtering mechanisms. Without prior written authorization from ISM, you shall not build a business utilizing the Content, whether or not for profit. You shall not create, recreate, distribute, incorporate in other work, or advertise an index of any portion of the Content unless you receive prior written authorization from ISM. Requests for permission to reproduce or distribute ISM ROB Content can be made by contacting in writing at: ISM Research, Institute for Supply Management, 309 W. 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®, Manufacturing PMI®, Services PMI®, and Hospital PMI® 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 Services 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 Services ISM® Report On Business® featuring October 2022 data will be released at 10:00 a.m. ET on Thursday, November 3, 2022. *Unless the New York Stock Exchange is closed.
View original content to download multimedia:https://www.prnewswire.com/news-releases/services-pmi-at-56-7-september-2022-services-ism-report-on-business-301640833.html SOURCE Institute for Supply Management |