EconoIndicators

Non-manufacturing Report At a Glance
Index Readings Above 50 Represent Growth

• NMI/PMI: 50.2
• Reading above 50 represents growing activity
• Change: Down 0.4
• Business Activity/Production Index: 52.1
• Change: Up 0.5
• New Orders: 50.8
• Change: Up 1.1
• Employment: 44.2
• Change: Down 1.2
• Inventories: 45.5
• Change: Down 8

Technorati Tags: service, non-manufacturing, economy

September 2008 Non-Manufacturing ISM Report On Business®
NMI (Non-Manufacturing Index) at 50.2%
Business Activity Index at 52.1%
New Orders Index at 50.8%
Employment Index at 44.2%

(Tempe, Arizona) — Economic activity in the non-manufacturing sector grew in September, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business®.
The report was issued today by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee; and senior vice president — supply management for Hilton Hotels Corporation. “The NMI (Non-Manufacturing Index) registered 50.2 percent in September, 0.4 percentage point lower than the 50.6 percent registered in August, indicating growth for the second consecutive month in the non-manufacturing sector. The Non-Manufacturing Business Activity Index increased 0.5 percentage point to 52.1 percent. The New Orders Index increased 1.1 percentage points to 50.8 percent, and the Employment Index decreased 1.2 percentage points to 44.2 percent. The Prices Index decreased 2.9 percentage points to 70 percent in September, indicating a slower rate in price increases than in August. According to the NMI, 10 non-manufacturing industries reported growth in September. Respondents’ comments are positive about the reduction in fuel and commodity costs; however, they remain concerned about overall market conditions and the economy.”
INDUSTRY PERFORMANCE (Based on the NMI)
The 10 industries reporting growth in September based on the new NMI composite index — listed in order — are: Other Services*; Mining; Educational Services; Agriculture, Forestry, Fishing & Hunting; Utilities; Retail Trade; Construction; Health Care & Social Assistance; Transportation & Warehousing; and Information. The eight industries reporting contraction in September are: Arts, Entertainment & Recreation; Real Estate, Rental & Leasing; Accommodation & Food Services; Public Administration; Finance & Insurance; Management of Companies & Support Services; Wholesale Trade; and Professional, Scientific & Technical Services.
WHAT RESPONDENTS ARE SAYING …
“Business activity has stayed steady over the last month; no increases or decreases.” (Construction)
“Conditions are still not good, but there are signs of improvement.” (Retail Trade)
“Continue to see a retrenchment in expenses as we continually adjust expectations downward.” (Information)
“Business is good.” (Transportation & Warehousing)
“Public sector facing continued financial and revenue pressures. Most all capital expenditures are being deferred. Orders for routine supplies are reviewed for savings opportunities.” (Public Administration)

Source: Institute for Supply Management, formerly National Association of Purchasing Managers