Non-Manufacturing ISM Report On Business®.
(Tempe, Arizona) — Economic activity in the non-manufacturing sector grew in December for the 12th consecutive month, 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. "The NMI (Non-Manufacturing Index) registered 57.1 percent in December, 2.1 percentage points higher than the 55 percent registered in November, and indicating continued growth in the non-manufacturing sector. The Non-Manufacturing Business Activity Index increased 6.5 percentage points to 63.5 percent, reflecting growth for the 13th consecutive month at a faster rate than in November. The New Orders Index increased 5.3 percentage points to 63 percent, and the Employment Index decreased 2.2 percentage points to 50.5 percent, indicating growth in employment for the fourth consecutive month, but at a slower rate. The Prices Index increased 6.8 percentage points to 70 percent, indicating that prices increased significantly in December. According to the NMI, 14 non-manufacturing industries reported growth in December. Respondents' comments vary by company and industry, but overall are mostly positive about business conditions."
INDUSTRY PERFORMANCE (Based on the NMI)
The 14 industries reporting growth in December based on the NMI composite index — listed in order — are: Real Estate, Rental & Leasing; Retail Trade; Information; Mining; Transportation & Warehousing; Professional, Scientific & Technical Services; Utilities; Finance & Insurance; Management of Companies & Support Services; Wholesale Trade; Arts, Entertainment & Recreation; Health Care & Social Assistance; Accommodation & Food Services; and Construction. The three industries reporting contraction in December are: Agriculture, Forestry, Fishing & Hunting; Educational Services; and Public Administration.
WHAT RESPONDENTS ARE SAYING ...
- "Overall business climate remains reasonably positive." (Management of Companies & Support Services)
- "Pricing pressures are starting to heat up." (Construction)
- "Outlook for 2011 is positive with an increase in spending." (Finance & Insurance)
- "Looks like more budget reductions are coming in the next year." (Educational Services)
- "Cotton prices are moving upward, but prices are being kept in line as the overall Asian market cools somewhat."(Retail Trade)
- "Business picking up for holiday — above expectations." (Transportation & Warehousing)
| ISM NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM NON-MANUFACTURING AND ISM MANUFACTURING SURVEYS* DECEMBER 2010 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-Manufacturing | Manufacturing | ||||||||
| Index | Series Index Dec. |
Series Index Nov. |
Percent Point Change |
Direction | Rate of Change |
Trend** (Months) |
Series Index Dec. |
Series Index Nov. |
Percent Point Change |
| NMI/PMI | 57.1 | 55.0 | +2.1 | Growing | Faster | 12 | 57.0 | 56.6 | +0.4 |
| Business Activity/Production | 63.5 | 57.0 | +6.5 | Growing | Faster | 13 | 60.7 | 55.0 | +5.7 |
| New Orders | 63.0 | 57.7 | +5.3 | Growing | Faster | 16 | 60.9 | 56.6 | +4.3 |
| Employment | 50.5 | 52.7 | -2.2 | Growing | Slower | 4 | 55.7 | 57.5 | -1.8 |
| Supplier Deliveries | 51.5 | 52.5 | -1.0 | Slowing | Slower | 9 | 55.9 | 57.2 | -1.3 |
| Inventories | 52.5 | 51.5 | +1.0 | Growing | Faster | 2 | 51.8 | 56.7 | -4.9 |
| Prices | 70.0 | 63.2 | +6.8 | Increasing | Faster | 17 | 72.5 | 69.5 | +3.0 |
| Backlog of Orders | 48.5 | 51.5 | -3.0 | Contracting | From Growing | 1 | 47.0 | 46.0 | +1.0 |
| New Export Orders | 56.0 | 59.5 | -3.5 | Growing | Slower | 4 | 54.5 | 57.0 | -2.5 |
| Imports | 51.0 | 54.5 | -3.5 | Growing | Slower | 5 | 50.5 | 53.0 | -2.5 |
| Inventory Sentiment | 61.5 | 60.0 | +1.5 | Too High | Faster | 163 | N/A | N/A | N/A |
| Customers' Inventories | N/A | N/A | N/A | N/A | N/A | N/A | 40.0 | 45.5 | -5.5 |
* Non-Manufacturing ISM Report On Business® data is seasonally adjusted for Business Activity, New Orders, Prices and Employment. Manufacturing ISM Report On Business® data is seasonally adjusted for New Orders, Production, Employment, Supplier Deliveries and Inventories.
** Number of months moving in current direction.Read more
Categories: Small Business Survival, Inventory Management
Tags: inventory retailer wholesale
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