(PHOTO: REUTERS)
The Non-Manufacturing Report on Business, the Institute for Supply Management’s gauge of service-sector growth, increased to 55.7 last month from 54.5 in March. The reading also topped the expectation for a reading of 54.7.
Readings above 50 in the NMI indicate expansion, while those below point to contraction.
The Business Activity Index in April registered 58.8%, a decrease of 1 percentage point from March’s reading of 59.8%. However, this marks growth in business activity for the 81st consecutive month. Employment activity in the non-manufacturing sector grew in April for the second consecutive month, up 2.7% to 53.
Non-Manufacturing Sector Industry Performance
The 13 non-manufacturing industries reporting growth in April — listed in order — are: Information; Management of Companies & Support Services; Accommodation & Food Services; Wholesale Trade; Health Care & Social Assistance; Utilities; Finance & Insurance; Real Estate, Rental & Leasing; Construction; Agriculture, Forestry, Fishing & Hunting; Public Administration; Professional, Scientific & Technical Services; and Retail Trade. The four industries reporting contraction in April are: Other Services; Mining; Transportation & Warehousing; and Educational Services.
| ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS* APRIL 2016 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-Manufacturing | Manufacturing | ||||||||
| 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® | 55.7 | 54.5 | +1.2 | Growing | Faster | 75 | 50.8 | 51.8 | -1.0 |
| Business Activity/Production | 58.8 | 59.8 | -1.0 | Growing | Slower | 81 | 54.2 | 55.3 | -1.1 |
| New Orders | 59.9 | 56.7 | +3.2 | Growing | Faster | 81 | 55.8 | 58.3 | -2.5 |
| Employment | 53.0 | 50.3 | +2.7 | Growing | Faster | 2 | 49.2 | 48.1 | +1.1 |
| Supplier Deliveries | 51.0 | 51.0 | 0.0 | Slowing | Same | 4 | 49.1 | 50.2 | -1.1 |
| Inventories | 54.0 | 52.5 | +1.5 | Growing | Faster | 13 | 45.5 | 47.0 | -1.5 |
| Prices | 53.4 | 49.1 | +4.3 | Increasing | From Decreasing |
1 | 59.0 | 51.5 | +7.5 |
| Backlog of Orders | 51.5 | 52.0 | -0.5 | Growing | Slower | 4 | 50.5 | 51.0 | -0.5 |
| New Export Orders | 56.5 | 58.5 | -2.0 | Growing | Slower | 3 | 52.5 | 52.0 | +0.5 |
| Imports | 54.0 | 53.0 | +1.0 | Growing | Faster | 3 | 50.0 | 49.5 | +0.5 |
| Inventory Sentiment | 61.0 | 62.5 | -1.5 | Too High | Slower | 227 | N/A | N/A | N/A |
| Customers’ Inventories | N/A | N/A | N/A | N/A | N/A | N/A | 46.0 | 49.0 | -3.0 |
| Overall Economy | Growing | Faster | 81 | ||||||
| Non-Manufacturing Sector | Growing | Faster | 75 | ||||||
* 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.
