ISM Non-Manufacturing Report on Business: August 2016

Yesterday, the Institute for Supply Management released their latest Non-Manufacturing Report on Business indicating that service related business activity worsened notably in August with the overall non-manufacturing index falling to a weak 51.4 from last months reading of 55.5.

At 51.8 the business activity index also worsened notably since last month.

ISM Non-Manufacturing Report on Business: January 2013

Today, the Institute for Supply Management released their latest Non-Manufacturing Report on Business indicating that service related business activity continued to expand in January but assessments were slightly lower than last month with the business activity component declining and the overall non-manufacturing index edging down slightly to 55.2 from 55.7.

At 56.4 the business activity index declined a notable 7.24% since December falling 5.21% below the level seen a year earlier.

This month, service industry respondents are sounding mixed reporting some cautious optimism as well as "soft" assessments of conditions:


"Sales are up slightly compared to this same period last year. This is offset by slight increases in costs for personnel benefits, fuel and other operating costs." (Public Administration)

"Business is good, but we find ourselves in a very competitive environment." (Construction)

"No change in business levels since prior month, but optimism growing that commercial and industrial construction will experience growth in 2013." (Real Estate, Rental & Leasing)

"Healthcare reform causing continued slowdown and less investment." (Health Care & Social Assistance)

"Seeing increasing prices on services and goods — some not substantiated. Business outlook continues to show small signs of improvement in parts of our business, but other parts are lagging behind." (Professional, Scientific & Technical Services)

"There seems to be some stabilization in recent months. Business seems a little more confident, and consumers are participating once again." (Retail Trade)

"Business is slightly softer than this time last year, but there are a lot of projects on the horizon which gives us confidence." (Wholesale Trade)

ISM Non-Manufacturing Report on Business: October 2012

Today, the Institute for Supply Management released their latest Non-Manufacturing Report on Business indicating that service related business activity was slowed in October with the business activity component weakening and the overall non-manufacturing index declining to 54.2 from 55.1 in September.

At 55.4 the business activity index declined a notable 7.51% since September but remained 3.94% above the level seen a year earlier.

This month, service industry respondents are sounding mixed reporting "sluggish" conditions but steady activity:

"Business with markets and customers we serve remains strong." (Management of Companies & Support Services)

"Business is steady, with good fourth quarter expected." (Information)

"The sluggish pace of economic recovery coupled with rapid increases in gas prices on the West Coast continue to drag down customer traffic and discretionary spending. Levels remain well below last year." (Arts, Entertainment & Recreation)

"Ongoing concerns about healthcare reform; reluctance to expand or hire." (Health Care & Social Assistance)

"Outlook is positive yet still guarded. Clients have some pent-up demand that they are acting on with short-term contracts." (Professional, Scientific & Technical Services)

"More companies seeking relief from fuel increases." (Public Administration)

ISM Manufacturing Report on Business: February 2012

Today, the Institute for Supply Management released their latest Report on Business for the manufacturing sector indicating that manufacturing activity pulled back in February with assessments of most measures cooled.

At 52.4 the purchasing manager’s composite index (PMI) declined a notable 3.14% since January remaining 14.66% below the level seen a year earlier.

Respondents indicated that while there is still some concern over the strength of the recovery and rising commodity prices, outlook was overall positive going forward:

"Business is holding steady. Concern over commodity prices ongoing." (Chemical Products)

"Still somewhat cautious about recovery. Expecting a good year, but not seeing orders yet." (Machinery)

"Demand remains consistent to strong on all levels." (Paper Products)

"Demand from auto makers is getting stronger." (Fabricated Metal Products)

"Manufacturing is busy. Spending money on new equipment to accommodate customer demands. Material prices are staying in check." (Food, Beverage & Tobacco Products)

"There seems to be a much more positive outlook for the economy. Customers are ordering material for stock rather than just working hand-to-mouth." (Fabricated Metal Products)

"Global GDP softening and beginning to impact the demand chain." (Computer & Electronic Products)

"Production is busy — several new large projects." (Primary Metals)

"Customers [are] lowering inventory levels, anticipating price decrease due to third-party published reports on materials." (Plastics & Metal Products)

"We are optimistic about the U.S. market this year, a little hesitant about what may happen in Europe and unsure about China." (Transportation Equipment)

"Shipments are increasing over last year. Waiting to see if the trend continues." (Wood Products)

ISM Manufacturing Report on Business: November 2011

Today, the Institute for Supply Management released their latest Report on Business for the manufacturing sector indicating that manufacturing activity improved in November with assessments of many measures increasing.

At 52.7 the purchasing manager’s composite index (PMI) increased 3.74% since October but remained 9.45% below the level seen a year earlier.

Some respondents indicated that business in improving but orders remain weak:

"Business still holding its own. Some growth in margin now that some of the raw materials prices have abated. Oil is pushing $100 so that has not been favorable." (Chemical Products)

"Orders for the remaining two months have increased after an extended 'summer dip' in sales overall. We expect to finish the year approximately 10 percent above 2010." (Electrical Equipment, Appliances & Components)

"Seeing a slight slowdown in orders; could be related to the holidays." (Primary Metals)

"Oil exploration seems to be really picking up. Government is permitting again, so business is the busiest we've ever seen." (Computer & Electronic Products)

"The EPS ruling about higher fees for coal-generated electricity can have a huge, negative impact on our business if implemented in January 2012. We are at the peak of our seasonal demand push." (Plastics & Rubber Products)

ISM Manufacturing Report on Business: June 2011

Today, the Institute for Supply Management released their latest Report on Business for the manufacturing sector indicating that economic activity continued to expand in June and at a faster pace than in May while most other measures strengthened.

At 55.3 the purchasing manager’s composite index (PMI) declined a whopping 11.42% since April and increased 3.36% above the level seen a year earlier.

Some respondents indicated increasing pressure on prices as higher energy prices stocked inflationary forces as well as weak economic trends and Japan earthquake related disruptions:

"We continue to see inflation, though at a reduced rate [compared] to earlier months." (Chemical Products)

"Slight slowdown in overall business in both domestic and international markets, although still above 2010 at the same time." (Electrical Equipment, Appliances & Components)

"The earthquake and related issues in Japan have caused shortages of some automotive equipment, negatively impacting global automotive production." (Fabricated Metal Products)

"Sales continue to be stronger than expected across both retail and industrial channels. Material costs are definitely rising and will force increases to end-use customers." (Paper Products)

"High commodity prices continue to be worrisome." (Food, Beverage & Tobacco Products)

"Business is still up and down, with no real upside potential for us until the housing market rebounds." (Furniture & Related Products)

"Customers are still being cautious with their buying. Certain plastics and metal prices continue to rise." (Machinery)

ISM Non-Manufacturing Report on Business: March 2011

Today, the Institute for Supply Management released their latest Non-Manufacturing Report on Business indicating that service related economic activity pulled back notably throughout March.

At 59.7 the business activity index weakened dropping 10.76% since February but still remaining 2.75% above the level seen a year earlier.

ISM Non-Manufacturing Report on Business: September 2010

Today, the Institute for Supply Management released their latest Non-Manufacturing Report on Business indicating that service related economic activity continued to expand but at a somewhat slower pace in September.

At 52.80 the business activity index weakened for the fourth consecutive month declining 2.94% since August and sliding 0.75% below the level seen a year earlier, the first year-over-year decline in 14 consecutive months.

It’s important to note though that only 3 of the 11 indicators cited in the report showed slowing growth since August while the "inventories" and “backlog of order” components actually contracted.