Sections: Economy

ISM Non-Manufacturing Business Survey: Service Sector Growth Slows

Service Sector Activity Declines After Manufacturing Contracts

Service sector employee, nurse at a hospital. (Photo: REUTERS)

The Institute for Supply Management’s Non-Manufacturing Business Survey, a gauge of service-sector growth fell to 55.9 in November from 59.1 in October. The reading was below expectations for a shallower drop to 58, and the lowest since May. Readings above 50 indicate expansion, while those below point to contraction.

“According to the NMI, 12 non-manufacturing industries reported growth in November,” said Anthony Nieves, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee. “After a strong month of growth in October, the non-manufacturing sector’s rate of growth slowed in November. Most respondents are still positive about business conditions.”

ISM^® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM^® NON-MANUFACTURING AND ISM^® MANUFACTURING SURVEYS* NOVEMBER 2015
	Non-Manufacturing						Manufacturing
Index	Series Index Nov	Series Index Oct	Percent Point Change	Direction	Rate of Change	Trend** (Months)	Series Index Nov	Series Index Oct	Percent Point Change
NMI^®/PMI^®	55.9	59.1	-3.2	Growing	Slower	70	48.6	50.1	-1.5
Business Activity/Production	58.2	63.0	-4.8	Growing	Slower	76	49.2	52.9	-3.7
New Orders	57.5	62.0	-4.5	Growing	Slower	76	48.9	52.9	-4.0
Employment	55.0	59.2	-4.2	Growing	Slower	21	51.3	47.6	+3.7
Supplier Deliveries	53.0	52.0	+1.0	Slowing	Faster	6	50.6	50.4	+0.2
Inventories	54.5	52.5	+2.0	Growing	Faster	8	43.0	46.5	-3.5
Prices	50.3	49.1	+1.2	Increasing	From Decreasing	1	35.5	39.0	-3.5
Backlog of Orders	51.5	54.5	-3.0	Growing	Slower	6	43.0	42.5	+0.5
New Export Orders	49.5	54.5	-5.0	Contracting	From Growing	1	47.5	47.5	0.0
Imports	51.0	54.5	-3.5	Growing	Slower	5	49.0	47.0	+2.0
Inventory Sentiment	63.5	63.0	+0.5	Too High	Faster	222	N/A	N/A	N/A
Customers’ Inventories	N/A	N/A	N/A	N/A	N/A	N/A	50.5	51.0	-0.5
Overall Economy				Growing	Slower	76
Non-Manufacturing Sector				Growing	Slower	70

* 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.

** Number of months moving in current direction.

COMMODITIES REPORTED UP/DOWN IN PRICE, AND IN SHORT SUPPLY

Commodities Up in Price

Butter (3); Dairy Products; Food Products (2); Labor (7); Lettuce; Lumber Products – Pine, Spruce, and Treated; Produce; and Strawberries.

Commodities Down in Price

Aluminum; Beef; Chicken; Copper; #1 Diesel Fuel (4); #2 Diesel Fuel (3); Fuel (4); Gasoline (5); Lab Supplies; Natural Gas; Oil; Shrimp; Software Related; and Soybean Meal.

Commodities in Short Supply

Labor (2); and Turkey (2).

Note: The number of consecutive months the commodity is listed is indicated after each item.

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PPD Business Staff

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.