Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Good data on ISM Non Mfg – new orders was the star up 1.5 and at 56.0. Employment however fell 1.9. This report is more important to the U.S. economy as there is far more service work than manufacturing work.
Full report here.
“The NMI™ registered 53.7 percent in May, 0.6 percentage point higher than the 53.1 percent registered in April. This indicates continued growth at a slightly faster rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index registered 56.5 percent, which is 1.5 percentage points higher than the 55 percent reported in April, reflecting growth for the 46th consecutive month. The New Orders Index increased by 1.5 percentage points to 56 percent, and the Employment Index decreased 1.9 percentage points to 50.1 percent, indicating growth in employment for the 10th consecutive month. The Prices Index decreased 0.1 percentage point to 51.1 percent, indicating prices increased at a slower rate in May when compared to April. According to the NMI™, 13 non-manufacturing industries reported growth in May. The majority of respondents’ comments are optimistic about business conditions. However, there is a degree of uncertainty about the long-term outlook.”
WHAT RESPONDENTS ARE SAYING …
- “Sales remain slightly higher than the same period last year, but still below pre-recession sales figures.” (Public Administration)
- “The job order market slowed in April/May. We saw a slight increase in employment due to working down the order/inquiry backlog.” (Professional, Scientific & Technical Services)
- “Business seems to be improving through the second half of the year.” (Information)
- “Fairly stable the last month; overall optimistic going forward.” (Accommodation & Food Services)
- “The flat sequential sales — which began in January 2012 — are still continuing. At this point, we do not predict any lift in the foreseeable future. We do not see any negatives; it appears that business has reached its ‘cruising altitude’ and is staying there.” (Wholesale Trade)
- “Healthcare reform and sequestration are having a strong negative impact on business.” (Health Care & Social Assistance)
- “North America continues to improve at a modest rate. Europe is still a problem for global recovery.” (Mining)
| ISM NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM NON-MANUFACTURING AND ISM MANUFACTURING SURVEYS* MAY 2013 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-Manufacturing | Manufacturing | ||||||||
| Index | Series Index May |
Series Index Apr |
Percent Point Change |
Direction | Rate of Change |
Trend** (Months) |
Series Index May |
Series Index Apr |
Percent Point Change |
| NMI™/PMI™ | 53.7 | 53.1 | +0.6 | Growing | Faster | 41 | 49.0 | 50.7 | -1.7 |
| Business Activity/Production | 56.5 | 55.0 | +1.5 | Growing | Faster | 46 | 48.6 | 53.5 | -4.9 |
| New Orders | 56.0 | 54.5 | +1.5 | Growing | Faster | 46 | 48.8 | 52.3 | -3.5 |
| Employment | 50.1 | 52.0 | -1.9 | Growing | Slower | 10 | 50.1 | 50.2 | -0.1 |
| Supplier Deliveries | 52.0 | 51.0 | +1.0 | Slowing | Faster | 5 | 48.7 | 50.9 | -2.2 |
| Inventories | 51.5 | 56.0 | -4.5 | Growing | Slower | 4 | 49.0 | 46.5 | +2.5 |
| Prices | 51.1 | 51.2 | -0.1 | Increasing | Slower | 44 | 49.5 | 50.0 | -0.5 |
| Backlog of Orders | 51.5 | 51.5 | 0.0 | Growing | Same | 4 | 48.0 | 53.0 | -5.0 |
| New Export Orders | 50.0 | 53.5 | -3.5 | Unchanged | From Growing | 1 | 51.0 | 54.0 | -3.0 |
| Imports | 49.5 | 58.5 | -9.0 | Contracting | From Growing | 1 | 54.5 | 55.0 | -0.5 |
| Inventory Sentiment | 62.5 | 60.5 | +2.0 | Too High | Faster | 192 | N/A | N/A | N/A |
| Customers’ Inventories | N/A | N/A | N/A | N/A | N/A | N/A | 46.0 | 44.5 | +1.5 |
* Non-Manufacturing ISM Report On Business® data is seasonally adjusted for Business Activity, New Orders, Prices and Employment. Manufacturing ISM Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries.
** Number of months moving in current direction.
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