NMI® at 55.2%; April Non-Manufacturing ISM® Report On Business®; Business Activity Index at 60.9%; New Orders Index at 58.2%; Employment Index at 51.3%
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DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report's information reflects the entire
The report was issued today by
INDUSTRY PERFORMANCE
The 14 non-manufacturing industries reporting growth in April — listed in order — are: Arts,
WHAT RESPONDENTS ARE SAYING ...
- "Our outlook for 2014 remains on target. No significant changes with our customer base." (Management of Companies & Support Services)
- "General business conditions are improving." (Information)
- "Market conditions are generally steady; internal pressure to reduce overall cost of goods and services." (Finance & Insurance)
- "Business levels have been stable. Our company made an acquisition this past month, so we are planning for revenue growth in the second half of 2014." (Real Estate, Rental & Leasing)
- "Traffic and sales are up due to break in weather." (Accommodation & Food Services)
- "Overall spending continues to trend upward, particularly for large dollar items, like vehicles and aircraft, as the state replenishes the fleet that was depleted during 2009—2013." (
Public Administration ) - "We are experiencing a pickup in sales, which has brought back a little optimism that we may have seen the floor, and things could be turning up. We are making investments to take advantage of the upswing to leverage as many sales options as possible." (Retail Trade)
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ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS*</p> |
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Non-Manufacturing |
Manufacturing |
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|
Index |
Series Index Apr |
Series Index Mar |
Percent Point Change |
Direction |
Rate of Change |
Trend** (Months) |
Series Index Apr |
Series Index Mar |
Percent Point Change |
|
NMI®/PMI® |
55.2 |
53.1 |
+2.1 |
Growing |
Faster |
51 |
54.9 |
53.7 |
+1.2 |
|
Business Activity/ Production |
60.9 |
53.4 |
+7.5 Growing |
Faster |
57 |
55.7 |
55.9 |
-0.2 |
|
|
New Orders |
58.2 |
53.4 |
+4.8 |
Growing |
Faster |
57 |
55.1 |
55.1 |
0.0 |
|
Employment |
51.3 |
53.6 |
-2.3 |
Growing |
Slower |
2 |
54.7 |
51.1 |
+3.6 |
|
Supplier Deliveries |
50.5 |
52.0 |
-1.5 |
Slowing |
Slower |
6 |
55.9 |
54.0 |
+1.9 |
|
Inventories |
55.5 |
48.0 |
+7.5 |
Growing |
From Contracting |
1 |
53.0 |
52.5 |
+0.5 |
|
Prices |
60.8 |
58.3 |
+2.5 |
Increasing |
Faster |
55 |
56.5 |
59.0 |
-2.5 |
|
Backlog of Orders |
49.0 |
51.5 |
-2.5 |
Contracting |
From Growing |
1 |
55.5 |
57.5 |
-2.0 |
|
New Export Orders |
57.0 |
49.5 |
+7.5 |
Growing |
From Contracting |
1 |
57.0 |
55.5 |
+1.5 |
|
Imports |
55.5 |
50.5 |
+5.0 |
Growing |
Faster |
2 |
58.0 |
54.5 |
+3.5 |
|
Inventory Sentiment |
65.0 |
60.5 |
+4.5 |
|
Faster |
203 |
N/A |
N/A |
N/A |
|
Customers' Inventories |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
42.0 |
42.0 |
0.0 |
|
* Non-Manufacturing ISM®Report On Business®data is seasonally adjusted for 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. |
COMMODITIES REPORTED UP/DOWN IN PRICE, and IN SHORT SUPPLY
Commodities Up in Price
Bacon (2); Beans; Beef Items (5); Building Materials; Chemical Products; Chicken; Coffee (3); Copy Paper (3); Dairy (5); #1 Diesel Fuel (4); #2 Diesel Fuel (5); Fuel; Gasoline (5); Ground Beef; Meat Products; Natural Gas; Office and Computer Supplies*; Paper Products (2); Plastic Bags; Plastic Products (3); Pork Products (2); Professional Labor (2); Repair & Maintenance; and Stainless Steel Products.
Commodities Down in Price
Commodities in Short Supply
Beef; Chemicals; Helium; Medical IV Solutions (4); and Pork.
Note: The number of consecutive months the commodity is listed is indicated after each item.
*Reported as both up and down in price.
NMI®
In April, the NMI® registered 55.2 percent, an increase of 2.1 percentage points when compared to March's reading of 53.1 percent indicating continued growth in the non-manufacturing sector for the 51st consecutive month. A reading above 50 percent indicates the non-manufacturing sector economy is generally expanding; below 50 percent indicates the non-manufacturing sector is generally contracting.
NMI® HISTORY
|
Month |
NMI® |
Month |
NMI® |
|
|
55.2 |
|
55.1 |
|
|
53.1 |
|
54.5 |
|
|
51.6 |
|
57.9 |
|
|
54.0 |
|
55.9 |
|
|
53.0 |
|
53.4 |
|
|
54.1 |
|
54.0 |
|
Average for 12 months – 54.3 High – 57.9 Low – 51.6 |
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Business Activity
ISM®'s Business Activity Index in April registered 60.9 percent, a noteworthy increase of 7.5 percentage points higher than March's reading of 53.4 percent. Fourteen industries reported increased business activity, and three industries reported decreased activity for the month of April. Comments from respondents include: "Better economy, increased sales" and "Improvement in the weather."
The industries reporting growth of business activity in April — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Construction; Wholesale Trade; Retail Trade; Educational Services; Arts,
|
Business Activity |
%Higher |
%Same |
%Lower |
Index |
|
|
37 |
54 |
9 |
60.9 |
|
|
31 |
54 |
15 |
53.4 |
|
|
30 |
51 |
19 |
54.6 |
|
|
27 |
52 |
21 |
56.3 |
New Orders
ISM®'s Non-Manufacturing New Orders Index grew in April for the 57th consecutive month. The index registered 58.2 percent, an increase of 4.8 percentage points from the March reading of 53.4 percent. Comments from respondents include: "Solid sales over the next few months" and "Improved business activity/more marketing effort."
The 13 industries reporting growth of new orders in April — listed in order — are: Wholesale Trade; Retail Trade; Educational Services; Arts,
The five industries reporting contraction of new orders in April are: Mining; Other Services; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Management of Companies & Support Services.
|
New Orders |
%Higher |
%Same |
%Lower |
Index |
|
|
33 |
55 |
12 |
58.2 |
|
|
29 |
57 |
14 |
53.4 |
|
|
26 |
56 |
18 |
51.3 |
|
|
22 |
55 |
23 |
50.9 |
Employment
Employment activity in the non-manufacturing sector grew in April for the second consecutive month. ISM®'s Non-Manufacturing Employment Index registered 51.3 percent, which reflects a decrease of 2.3 percentage points when compared to March's reading of 53.6 percent. Thirteen industries reported increased employment, and five industries reported decreased employment. Comments from respondents include: "Added jobs — new work awards" and "Doing more with fewer people; focusing on training/retraining."
The 13 industries reporting an increase in employment in April — listed in order — are: Arts,
|
Employment |
%Higher |
%Same |
%Lower |
Index |
|
|
21 |
68 |
11 |
51.3 |
|
|
25 |
61 |
14 |
53.6 |
|
|
16 |
65 |
19 |
47.5 |
|
|
18 |
70 |
12 |
56.4 |
Supplier Deliveries
The Supplier Deliveries Index registered 50.5 percent in April, indicating that deliveries were slower for the sixth consecutive month. A reading above 50 percent indicates slower deliveries, while a reading below 50 percent indicates faster deliveries.
The four industries reporting slower deliveries in April are: Other Services; Retail Trade; Construction; and Wholesale Trade. The five industries reporting faster deliveries in April are: Mining; Transportation & Warehousing;
|
Supplier Deliveries |
%Slower |
%Same |
%Faster |
Index |
|
|
5 |
91 |
4 |
50.5 |
|
|
9 |
86 |
5 |
52.0 |
|
|
11 |
84 |
5 |
53.0 |
|
|
11 |
83 |
6 |
52.5 |
Inventories
ISM®'s Non-Manufacturing Inventories Index indicated substantial growth in April after contracting for one month. The index registered 55.5 percent, which is 7.5 percentage points higher than the 48 percent reported in March. Of the total respondents in April, 29 percent indicated they do not have inventories or do not measure them. Comments from respondents include: "Rightsizing stock levels" and "Materials to support scheduled maintenance projects."
The 12 industries reporting an increase in inventories in April — listed in order — are: Mining; Transportation & Warehousing; Other Services; Agriculture, Forestry, Fishing & Hunting; Arts,
|
Inventories |
%Higher |
%Same |
%Lower |
Index |
|
|
22 |
67 |
11 |
55.5 |
|
15 |
66 |
19 |
48.0 |
|
|
|
15 |
71 |
14 |
50.5 |
|
|
18 |
65 |
17 |
50.5 |
Prices
Prices paid by non-manufacturing organizations for purchased materials and services increased in April for the 55th consecutive month. ISM®'s Non-Manufacturing Prices Index for April registered 60.8 percent, 2.5 percentage points higher than the 58.3 percent reported in March. The percentage of respondents reporting higher prices is 31 percent, the percentage indicating no change in prices paid is 65 percent, and 4 percent of the respondents reported lower prices.
Fifteen non-manufacturing industries reported an increase in prices paid during the month of April, in the following order: Arts,
|
Prices |
%Higher |
%Same |
%Lower |
Index |
|
|
31 |
65 |
4 |
60.8 |
|
|
28 |
68 |
4 |
58.3 |
|
|
23 |
71 |
6 |
53.7 |
|
|
21 |
76 |
3 |
57.1 |
NOTE: Commodities reported as up in price and down in price are listed in the commodities section of this report.
Backlog of Orders
ISM®'s Non-Manufacturing Backlog of Orders Index contracted in April after two consecutive months of growth. The index registered 49 percent, which is 2.5 percentage points lower than the 51.5 percent reported in March. Of the total respondents in April, 36 percent indicated they do not measure backlog of orders.
The six industries reporting an increase in order backlogs in April — listed in order — are: Construction; Real Estate, Rental & Leasing; Utilities; Finance & Insurance; Retail Trade; and Health Care & Social Assistance. The seven industries reporting a decrease in order backlogs in April — listed in order — are: Mining; Other Services; Transportation & Warehousing; Professional, Scientific & Technical Services; Management of Companies & Support Services; Wholesale Trade; and
|
Backlog of Orders |
%Higher |
%Same |
%Lower |
Index |
|
|
14 |
70 |
16 |
49.0 |
|
|
17 |
69 |
14 |
51.5 |
|
|
15 |
74 |
11 |
52.0 |
|
|
13 |
72 |
15 |
49.0 |
New Export Orders
Orders and requests for services and other non-manufacturing activities to be provided outside of
The five industries reporting an increase in new export orders in April are: Construction; Real Estate, Rental & Leasing; Information; Finance & Insurance; and Wholesale Trade. The two industries reporting a decrease in export orders in April are: Accommodation & Food Services; and Professional, Scientific & Technical Services. Ten industries reported no change in export orders in April compared to March.
|
New Export Orders |
%Higher |
%Same |
%Lower |
Index |
|
|
23 |
68 |
9 |
57.0 |
|
|
11 |
77 |
12 |
49.5 |
|
|
9 |
77 |
14 |
47.5 |
|
|
15 |
68 |
17 |
49.0 |
Imports
The ISM® Non-Manufacturing Imports Index grew in April for the second consecutive month. This month's reading at 55.5 percent is 5 percentage points higher than the 50.5 percent that was reported in March. Fifty-four percent of respondents reported that they do not use, or do not track the use of, imported materials.
The eight industries reporting an increase in imports for the month of April — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Information;
|
Imports |
%Higher |
%Same |
%Lower |
Index |
|
|
17 |
77 |
6 |
55.5 |
|
|
|
77 |
11 |
50.5 |
|
|
7 |
80 |
13 |
47.0 |
|
|
9 |
78 |
13 |
48.0 |
Inventory Sentiment
The ISM® Non-Manufacturing Inventory Sentiment Index in April registered 65 percent, which is 4.5 percentage points higher than the 60.5 percent reported in March. This indicates that respondents believe their inventories are still too high at this time. In April, 31 percent of respondents said their inventories were too high, 1 percent said their inventories were too low, and 68 percent said their inventories were about right.
The 12 industries reporting a feeling that their inventories are too high in April — listed in order — are: Management of Companies & Support Services; Arts,
|
Inventory Sentiment |
%Too High |
%About Right |
%Too Low |
Index |
|
|
31 |
68 |
1 |
65.0 |
|
|
28 |
65 |
7 |
60.5 |
|
|
28 |
68 |
4 |
62.0 |
|
|
31 |
64 |
5 |
63.0 |
About This Report
The data presented herein is obtained from a survey of non-manufacturing supply managers 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. Use of the data is in the public domain and should be compared to all other economic data sources when used in decision-making.
Data and Method of Presentation
The Non-Manufacturing ISM® Report On Business® is based on data compiled from purchasing and supply executives nationwide. Membership of the Non-Manufacturing Business Survey Committee is diversified by NAICS, based on each industry's contribution to gross domestic product (GDP). The Non-Manufacturing Business Survey Committee responses are divided into the following NAICS code categories: Agriculture, Forestry, Fishing & Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation & Warehousing; Information; Finance & Insurance; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Management of Companies & Support Services; Educational Services; Health Care & Social Assistance; Arts,
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 in that index 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.
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.
The Non-Manufacturing ISM®Report On Business® is published monthly by
The full text version of the Non-Manufacturing ISM® Report On Business® is posted on ISM®'s website at www.ism.ws on the third business day of every month after
The next Non-Manufacturing ISM® Report On Business® featuring the
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Contact: |
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Report On Business® Analyst |
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ISM®, ROB Media Relations |
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800/888-6276, Ext. 3015 |
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E-mail: [email protected] |
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