ISM REPORT ON BUSINESS NON-MANUFACTURING …

ISM? REPORT ON BUSINESS?

NON-MANUFACTURING

SEPTEMBER 2019

Analysis by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management? Non-Manufacturing Business Survey Committee

Economic activity in the non-manufacturing sector grew in September for the 116th consecutive month, say the nation's purchasing and supply executives in the latest NonManufacturing ISM? Report On Business?.

The NMI? registered 52.6 percent. This represents continued growth in the non-manufacturing sector, at a slower rate. The Non-Manufacturing

NMI? @

Business Activity Index decreased to

55.2 percent, 6.3 percentage points lower than the August reading

of 61.5 percent, reflecting growth for the 122nd consecutive

month. The New Orders Index registered 53.7 percent; 6.6

percentage points lower than the reading of 60.3 percent in

August. The Employment Index decreased 2.7 percentage points

in September to 50.4 percent from the August reading of 53.1 percent. The Prices Index increased 1.8 percentage points from the August reading of 58.2 percent to 60 percent, indicating that prices increased in September for the 28th consecutive month. The non-manufacturing sector pulled back after reflecting strong growth

in August. The 13 non-manufacturing

52.6% industries reporting growth in September -- listed in order -- are: Utilities; Retail Trade; Construction; Mining; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Public Administration; Management of Companies & Support Services; Finance & Insurance; Transportation & Warehousing; Information; Health Care & Social Assistance; and Professional, Scientific & Technical Services.

Other Services (services such as Equipment & Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning & Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services and Dating Services).

NON-MANUFACTURING AT A GLANCE

Index

NMI? Business Activity New Orders Employment Supplier Deliveries Inventories Prices Backlog of Orders New Export Orders Imports Inventory Sentiment OVERALL ECONOMY

Non-Manufacturing Sector

Sep Index 52.6 55.2 53.7 50.4 51.0 53.0 60.0 54.0 52.0 49.0 58.0

Aug Index 56.4 61.5 60.3 53.1 50.5 55.0 58.2 49.0 50.5 50.5 56.0

% Point Change

-3.8 -6.3 -6.6 -2.7 +0.5 -2.0 +1.8 +5.0 +1.5 -1.5 +2.0

Direction

Growing Growing Growing Growing Slowing Growing Increasing Growing Growing Contracting Too High Growing

Growing

Rate of Change Slower Slower Slower Slower

Faster Slower Faster From Contracting Faster From Growing Faster Slower

Slower

Trend* (months)

116 122 122 67

4 2 28 1 32 1 267 122

116

*Number of months moving in current direction. Non-Manufacturing ISM? Report On Business? data is seasonally adjusted for the Business Activity, New Orders, Prices and Employment Indexes.

NMI (Non-Manufacturing)

2017

2018

2019

52.6 %

48.6% = Non-Manufacturing Overall Economy Breakeven Line

50% = Non-Manufacturing Economy Breakeven Line

NMI?

In September, the NMI? registered 52.6 percent, 3.8 percentage points lower than the 56.4 percent in August. This is the lowest reading since August 2016, when the NMI? registered 51.8 percent. The non-manufacturing sector grew for the 116th consecutive month. A reading above 50 percent indicates the non-manufacturing sector economy is generally expanding; below 50 percent indicates the nonmanufacturing sector is generally contracting.

COMMODITIES REPORTED

Commodities Up in Price: Cheese; Construction Subcontractors; Diesel; Freight; Fuel* (2); Gasoline*; Labor -- Construction; Medical Supplies (2); and Pharmaceuticals.

Commodities Down in Price: Fuel*; Gasoline* (2); and Steel Products (3). Commodities in Short Supply: Construction Subcontractors (21); Labor (12); Labor -- Construction (42); Labor -- Temporary (3);

Medical Equipment; Pharmaceuticals; and Syringes.

*Indicates both up and down in price. Note: The number of consecutive months the commodity is listed is indicated after each item.

13

ISM? Report On Business?

September 2019

non-manufacturing

Analysis by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management? Non-Manufacturing Business Survey Committee

Business Activities (Non-Manufacturing)

2017

2018

2019

55.2%

Business Activity

ISM's Business Activity Index registered 55.2 percent. The 13 industries reporting growth of business activity in September -- listed in order -- are: Utilities; Construction; Retail Trade; Mining; Finance & Insurance; Real Estate, Rental & Leasing; Public Administration; Transportation & Warehousing; Health Care & Social Assistance; Information; Professional, Scientific & Technical Services; Accommodation & Food Services; and Management of Companies & Support Services.

New Orders (Non-Manufacturing)

2017

2018

2019

53.7%

New Orders

ISM's Non-Manufacturing New Orders Index registered 53.7 percent. The 12 industries reporting growth of new orders in September -- listed in order -- are: Utilities; Construction; Mining; Accommodation & Food Services; Public Administration; Retail Trade; Finance & Insurance; Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Professional, Scientific & Technical Services; Health Care & Social Assistance; and Information.

Employment (Non-Manufacturing)

2017

2018

2019

50.4%

Employment

ISM's Non-Manufacturing Employment Index registered 50.4 percent. The 11 industries reporting an increase in employment in September -- listed in order -- are: Retail Trade; Utilities; Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Other Services; Public Administration; Transportation & Warehousing; Mining; Information; and Health Care & Social Assistance.

Supplier Deliveries (Non-Manufacturing) 51.5%

2017

2018

2019

51%

Supplier Deliveries

The Supplier Deliveries Index registered 51 percent. The nine industries reporting slower deliveries in September -- listed in order -- are: Agriculture, Forestry, Fishing & Hunting; Construction; Mining; Accommodation & Food Services; Information; Management of Companies & Support Services; Transportation & Warehousing; Public Administration; and Professional, Scientific & Technical Services.

Inventory Change (Non-Manufacturing) 53.1%

2017

2018

2019

53%

Inventories

ISM's Non-Manufacturing Inventories Index grew in September, registering 53 percent. The six industries reporting an increase in inventories in September -- listed in order -- are: Real Estate, Rental & Leasing; Utilities; Transportation & Warehousing; Accommodation & Food Services; Wholesale Trade; and Retail Trade.

Other Services (services such as Equipment & Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning & Laundry Services,

Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services and Dating Services).

ISM? Report On Business?

September 2019

non-manufacturing

Analysis by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management? Non-Manufacturing Business Survey Committee

Prices (Non-Manufacturing)

2017

2018

55.1%

2019

60%

Prices

ISM's Non-Manufacturing Prices Index registered 60 percent. Fifteen non-manufacturing industries reported an increase in prices paid during the month of September, listed in the following order: Management of Companies & Support Services; Construction; Accommodation & Food Services; Arts, Entertainment & Recreation; Public Administration; Wholesale Trade; Health Care & Social Assistance; Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Utilities; Other Services; Retail Trade; Information; Finance & Insurance; and Transportation & Warehousing.

Backlog of Orders (Non-Manufacturing)

53.1%

2017

2018

2019

54%

Backlog of Orders

ISM's Non-Manufacturing Backlog of Orders Index grew in September. The index registered 54 percent, which is 5 percentage points higher than the 49 percent reported in August. The eight industries reporting an increase in order backlogs in September -- listed in order -- are: Accommodation & Food Services; Utilities; Retail Trade; Construction; Management of Companies & Support Services; Mining; Information; and Professional, Scientific & Technical Services.

New Export Orders (Non-Manufacturing)

2017

2018

2019

52%

New Export Orders

The New Export Orders Index registered 52 percent. The six industries reporting an increase in new export orders in September -- listed in order -- are: Accommodation & Food Services; Construction; Other Services; Retail Trade; Transportation & Warehousing; and Information.

Imports (Non-Manufacturing)

2017

2018

2019

49%

Imports

The Imports Index contracted registering 49 percent. The three industries reporting an increase in imports for the month of September are: Accommodation & Food Services; Finance & Insurance; and Information.

Inventories Sentiment (Non-Manufacturing)

2017

2018

2019

58%

Inventory Sentiment

The Non-Manufacturing Inventory Sentiment Index in September registered 58 percent. The eight industries reporting sentiment that their inventories were too high in September -- listed in order -- are: Wholesale Trade; Utilities; Retail Trade; Real Estate, Rental & Leasing; Management of Companies & Support Services; Mining; Health Care & Social Assistance; and Information.

Other Services (services such as Equipment & Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning & Laundry Services,

Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services and Dating Services).

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download