A waitress serves a steak and fried shrimp combo plate to a customer at Norms Diner on La Cienega Boulevard in Los Angeles, California May 20, 2015. (Photo: Reuters)
The Non-Manufacturing Index (NMI), the Institute for Supply Management (ISM) gauge of service sector activity, came in at an expected 56.9 in May. Seventeen of the 18 service sector industries reported growth, leaving only Educational Services in contraction.
“Although the non-manufacturing sector’s growth rate dipped in May, the sector continues to reflect strength, buoyed by the strong rate of growth in the Employment Index,” Anthony Nieves, the Chair of the Institute for ISM Non-Manufacturing Business Survey Committee said. “The majority of respondents’ comments continue to indicate optimism about business conditions and the overall economy.”
Backlogs, at 57.0, were very strong in the May Report on Business, which partly explain the boom in private-sector hiring for the month.
| ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS* MAY 2017 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| 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® | 56.9 | 57.5 | -0.6 | Growing | Slower | 89 | 54.9 | 54.8 | +0.1 |
| Business Activity/Production | 60.7 | 62.4 | -1.7 | Growing | Slower | 94 | 57.1 | 58.6 | -1.5 |
| New Orders | 57.7 | 63.2 | -5.5 | Growing | Slower | 94 | 59.5 | 57.5 | +2.0 |
| Employment | 57.8 | 51.4 | +6.4 | Growing | Faster | 39 | 53.5 | 52.0 | +1.5 |
| Supplier Deliveries | 51.5 | 53.0 | -1.5 | Slowing | Slower | 17 | 53.1 | 55.1 | -2.0 |
| Inventories | 54.0 | 52.5 | +1.5 | Growing | Faster | 2 | 51.5 | 51.0 | +0.5 |
| Prices | 49.2 | 57.6 | -8.4 | Decreasing | From Increasing | 1 | 60.5 | 68.5 | -8.0 |
| Backlog of Orders | 57.0 | 53.5 | +3.5 | Growing | Faster | 4 | 55.0 | 57.0 | -2.0 |
| New Export Orders | 54.5 | 65.5 | -11.0 | Growing | Slower | 4 | 57.5 | 59.5 | -2.0 |
| Imports | 48.5 | 53.0 | -4.5 | Contracting | From Growing | 1 | 53.5 | 55.5 | -2.0 |
| Inventory Sentiment | 63.0 | 60.0 | +3.0 | Too High | Faster | 240 | N/A | N/A | N/A |
| Customers’ Inventories | N/A | N/A | N/A | N/A | N/A | N/A | 49.5 | 45.5 | +4.0 |
| Overall Economy | Growing | Slower | 94 | ||||||
| Non-Manufacturing Sector | Growing | Slower | 89 | ||||||
* 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.
