US ISM Non Manufacturing PMI Beats Forecasts
It's been a while since we analyzed more granular items related to the US economy, so consider this the first item of many reports we will take a look at. Today let's take a look at the Non-Manufacturing PMI index, and what that means for the US economy. Details on all of these can be found on Trading Economics - a great resource for international and domestic economic data.
What is the 'Non-Manufacturing PMI'?
The Non-Manufacturing ISM Report On Business® is based on data compiled from purchasing and supply executives nationwide. 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. 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. Orders to the service producers make up about 90 percent of the US economy. This page provides the latest reported value for - United States ISM Non Manufacturing PMI - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. United States ISM Non Manufacturing PMI - actual data, historical chart and calendar of releases - was last updated on June of 2018.
What DOES THE LATEST DATA SAY?
The ISM Non-Manufacturing PMI index for the United States jumped to 58.6 in May of 2018 from 56.8 in April, well above market expectations of 57.5. Faster increases were seen for business activity, new orders and employment. Firms remain optimistic about business conditions and the overall economy although there continue to be concerns about the uncertainty surrounding tariffs, trade agreements and the impact on cost of goods sold.
Growth accelerated for business activity (61.3 from 59.1), new orders (60.5 from 60), employment (54.1 from 53.6), inventories (57.5 from 57) and backlog of orders (60.5 from 52). On the other hand, a slowdown was seen for supplier deliveries (58.5 from 54.5) and new export orders (57.5 from 61.5) and price pressures intensified (64.3 from 61.8).
The 14 non-manufacturing industries reported growth in May — listed in order — are: Wholesale Trade; Mining; Real Estate, Rental & Leasing; Construction; Retail Trade; Management of Companies & Support Services; Professional, Scientific & Technical Services; Transportation & Warehousing; Public Administration; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Finance & Insurance; Utilities; and Other Services. The only industry reporting a decrease is Information.
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