Dépêches
NMI at 56%; March Non-Manufacturing ISM Report On Business®; Business Activity Index at 58.9%; New Orders Index at 58.8%; Employment Index at 56.7%
Dépèche transmise le 4 avril 2012 par Business Wire
NMI at 56%; March Non-Manufacturing ISM Report On Business®; Business Activity Index at 58.9%; New Orders Index at 58.8%; Employment Index at 56.7%
TEMPE, Ariz.--(BUSINESS WIRE)--Economic activity in the non-manufacturing sector grew in March for the 27th consecutive month, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business®.
“Companies are seeking professional services to continue efficiencies while positioning for growth, when the top line comes back.”
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 registered 56 percent in March, 1.3 percentage points lower than the 57.3 percent registered in February, and indicating continued growth at a slower rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index registered 58.9 percent, which is 3.7 percentage points lower than the 62.6 percent reported in February, reflecting growth for the 32nd consecutive month. The New Orders Index decreased by 2.4 percentage points to 58.8 percent, and the Employment Index increased by 1 percentage point to 56.7 percent, indicating continued growth in employment at a slightly faster rate. The Prices Index decreased 4.5 percentage points to 63.9 percent, indicating prices increased at a slower rate in March when compared to February. According to the NMI, 16 non-manufacturing industries reported growth in March. Respondents’ comments remain mostly optimistic about business conditions. They indicate that increased discretionary spending reflects the increased confidence level of businesses and consumers. There is continued concern about cost pressures and the instability of fuel prices.”
INDUSTRY PERFORMANCE
The 16 non-manufacturing industries reporting growth in March — listed in order — are: Arts, Entertainment & Recreation; Management of Companies & Support Services; Accommodation & Food Services; Construction; Other Services; Wholesale Trade; Finance & Insurance; Information; Public Administration; Health Care & Social Assistance; Utilities; Real Estate, Rental & Leasing; Retail Trade; Educational Services; Professional, Scientific & Technical Services; and Transportation & Warehousing. The two industries reporting contraction in March are: Mining; and Agriculture, Forestry, Fishing & Hunting.
WHAT RESPONDENTS ARE SAYING …
- “2012 continues ahead of forecasted pace through March.” (Wholesale Trade)
- “February was a great month for auto sales — much better than expected. Forecasted sales volumes for the year are being revised upward.” (Retail Trade)
- “Positive year-over-year growth is finally being seen as customers’ discretionary spend is up, and overall traffic is increasing as well. Increased investments in marketing promotions and advertising during the past few months have helped improve customer loyalty, evidenced by longer stays and increased frequency of visits.” (Arts, Entertainment & Recreation)
- “Companies are seeking professional services to continue efficiencies while positioning for growth, when the top line comes back.” (Professional, Scientific & Technical Services)
- “We are starting to see the private sector building again; the money is starting to flow into construction.” (Construction)
- “Increasing demand for healthcare services while engaging in a more intense effort to reduce costs universally. [We are doing this] prior to implementation of healthcare reform, which is expected to dramatically reduce revenue by approximately 25 percent.” (Health Care & Social Assistance)
|
ISM NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM NON-MANUFACTURING AND ISM MANUFACTURING SURVEYS(a) MARCH 2012 |
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| Index | Non-Manufacturing | Manufacturing | ||||||||||||||||||
|
Series |
Series |
Percent |
Direction |
Rate of |
Trend(b) |
Series |
Series |
Percent |
||||||||||||
| NMI/PMI | 56.0 | 57.3 | -1.3 | Growing | Slower | 27 | 53.4 | 52.4 | +1.0 | |||||||||||
|
Business Activity/
Production |
58.9 | 62.6 | -3.7 | Growing | Slower | 32 | 58.3 | 55.3 | +3.0 | |||||||||||
| New Orders | 58.8 | 61.2 | -2.4 | Growing | Slower | 32 | 54.5 | 54.9 | -0.4 | |||||||||||
| Employment | 56.7 | 55.7 | +1.0 | Growing | Faster | 3 | 56.1 | 53.2 | +2.9 | |||||||||||
| Supplier Deliveries | 49.5 | 49.5 | 0.0 | Faster | Same | 2 | 48.0 | 49.0 | -1.0 | |||||||||||
| Inventories | 54.0 | 53.5 | +0.5 | Growing | Faster | 2 | 50.0 | 49.5 | +0.5 | |||||||||||
| Prices | 63.9 | 68.4 | -4.5 | Increasing | Slower | 32 | 61.0 | 61.5 | -0.5 | |||||||||||
| Backlog of Orders | 49.5 | 53.0 | -3.5 | Contracting | From Growing | 1 | 52.5 | 52.0 | +0.5 | |||||||||||
| New Export Orders | 52.5 | 54.5 | -2.0 | Growing | Slower | 8 | 54.0 | 59.5 | -5.5 | |||||||||||
| Imports | 56.0 | 52.0 | +4.0 | Growing | Faster | 4 | 53.5 | 54.0 | -0.5 | |||||||||||
| Inventory Sentiment | 58.5 | 61.5 | -3.0 | Too High | Slower | 178 | N/A | N/A | N/A | |||||||||||
| Customers’ Inventories | N/A | N/A | N/A | N/A | N/A | N/A | 44.5 | 46.0 | -1.5 | |||||||||||
(a) 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 and Supplier Deliveries.
(b) Number of months moving in current direction
COMMODITIES REPORTED UP / DOWN IN PRICE, and IN SHORT SUPPLY
Commodities Up in Price
Airfares (3); Aluminum Products; Copper Products (2); Diesel Fuel (2); #1 Diesel Fuel (4); #2 Diesel Fuel (5); Food & Beverage; Freight Charges; Fuel (3); Fuel Products; Fuel Surcharges; Gasoline (3); #2 Heating Fuel (2); Lumber (2); Medical/Surgical Supplies; Pharmaceuticals; Plastic Bags; Plastic Film (2); Plastic Products (2); and Urea.
Commodities Down in Price
Natural Gas (2) is the only commodity reported down in price.
Commodities in Short Supply
Crab (3); and Pharmaceuticals.
Note: The number of consecutive months the commodity is listed is indicated after each item.
MARCH 2012 NON-MANUFACTURING INDEX SUMMARIES
NMI
In March, the NMI registered 56 percent, indicating continued growth in the non-manufacturing sector for the 27th consecutive month. A reading above 50 percent indicates the non-manufacturing sector economy is generally expanding; below 50 percent indicates the non-manufacturing sector is generally contracting.
NMI HISTORY
| Month | NMI | Month | NMI | ||||||||||||||||||||||||||||||||||||||||
| Mar 2012 | 56.0 | Sep 2011 | 52.6 | ||||||||||||||||||||||||||||||||||||||||
| Feb 2012 | 57.3 | Aug 2011 | 53.8 | ||||||||||||||||||||||||||||||||||||||||
| Jan 2012 | 56.8 | Jul 2011 | 53.4 | ||||||||||||||||||||||||||||||||||||||||
| Dec 2011 | 53.0 | Jun 2011 | 53.3 | ||||||||||||||||||||||||||||||||||||||||
| Nov 2011 | 52.6 | May 2011 | 54.5 | ||||||||||||||||||||||||||||||||||||||||
| Oct 2011 | 52.6 | Apr 2011 | 54.4 | ||||||||||||||||||||||||||||||||||||||||
|
Average for 12 months – 54.2 |
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Business Activity
ISM’s Non-Manufacturing Business Activity Index in March registered 58.9 percent, 3.7 percentage points lower than the 62.6 percent registered in February. Thirteen industries reported increased business activity, and four industries reported decreased activity for the month of March. Comments from respondents include: “Economy seems to be recovering” and “New/increased sales booked.”
The industries reporting growth of business activity in March — listed in order — are: Arts, Entertainment & Recreation; Management of Companies & Support Services; Accommodation & Food Services; Construction; Finance & Insurance; Health Care & Social Assistance; Information; Real Estate, Rental & Leasing; Other Services; Wholesale Trade; Public Administration; Retail Trade; and Utilities. The industries reporting decreased business activity in March are: Mining; Educational Services; Professional, Scientific & Technical Services; and Transportation & Warehousing.
| Business Activity | %Higher | %Same | %Lower | Index | |||||||||||||||||
| Mar 2012 | 37 | 53 | 10 | 58.9 | |||||||||||||||||
| Feb 2012 | 34 | 52 | 14 | 62.6 | |||||||||||||||||
| Jan 2012 | 28 | 54 | 18 | 59.5 | |||||||||||||||||
| Dec 2011 | 28 | 54 | 18 | 55.9 |
New Orders
ISM’s Non-Manufacturing New Orders Index grew in March for the 32nd consecutive month. The index registered 58.8 percent, a decrease of 2.4 percentage points from the 61.2 percent reported in February. Comments from respondents include: “Improved business activity/more marketing effort” and “Market picking up.”
The 14 industries reporting growth of new orders in March — listed in order — are: Arts, Entertainment & Recreation; Management of Companies & Support Services; Construction; Finance & Insurance; Accommodation & Food Services; Information; Real Estate, Rental & Leasing; Other Services; Wholesale Trade; Utilities; Public Administration; Retail Trade; Transportation & Warehousing; and Professional, Scientific & Technical Services. The three industries reporting contraction of new orders in March are: Mining; Health Care & Social Assistance; and Educational Services.
| New Orders | %Higher | %Same | %Lower | Index | |||||||||||||||||
| Mar 2012 | 33 | 57 | 10 | 58.8 | |||||||||||||||||
| Feb 2012 | 31 | 58 | 11 | 61.2 | |||||||||||||||||
| Jan 2012 | 28 | 57 | 15 | 59.4 | |||||||||||||||||
| Dec 2011 | 24 | 57 | 19 | 54.6 |
Employment
Employment activity in the non-manufacturing sector grew in March at a slightly faster rate, as ISM’s Non-Manufacturing Employment Index registered 56.7 percent. This reflects an increase of 1 percentage point when compared to the 55.7 percent registered in February. Thirteen industries reported increased employment, four industries reported decreased employment, and one industry reported unchanged employment compared to February. Comments from respondents include: “Adding staff to support expansion” and “Increasing demand.”
The industries reporting an increase in employment in March — listed in order — are: Arts, Entertainment & Recreation; Management of Companies & Support Services; Wholesale Trade; Other Services; Accommodation & Food Services; Information; Educational Services; Construction; Finance & Insurance; Public Administration; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Utilities. The industries reporting a reduction in employment in March are: Real Estate, Rental & Leasing; Mining; Retail Trade; and Transportation & Warehousing.
| Employment | %Higher | %Same | %Lower | Index | |||||||||||||||||
| Mar 2012 | 24 | 66 | 10 | 56.7 | |||||||||||||||||
| Feb 2012 | 17 | 74 | 9 | 55.7 | |||||||||||||||||
| Jan 2012 | 18 | 66 | 16 | 57.4 | |||||||||||||||||
| Dec 2011 | 14 | 68 | 18 | 49.8 |
Supplier Deliveries
The Supplier Deliveries Index registered 49.5 percent in March. This is the same percentage rate registered in February, indicating that supplier deliveries were faster in March for the second consecutive month. A reading above 50 percent indicates slower deliveries, and below 50 percent indicates faster deliveries.
The five industries reporting slower deliveries in March are: Mining; Retail Trade; Educational Services; Public Administration; and Wholesale Trade. The four industries reporting faster supplier deliveries in March are: Agriculture, Forestry, Fishing & Hunting; Finance & Insurance; Information; and Utilities. Nine industries reported no change in supplier deliveries in March compared to February.
| Supplier Deliveries | %Slower | %Same | %Faster | Index | |||||||||||||||||
| Mar 2012 | 4 | 91 | 5 | 49.5 | |||||||||||||||||
| Feb 2012 | 4 | 91 | 5 | 49.5 | |||||||||||||||||
| Jan 2012 | 7 | 88 | 5 | 51.0 | |||||||||||||||||
| Dec 2011 | 9 | 85 | 6 | 51.5 |
Inventories
ISM’s Non-Manufacturing Inventories Index grew in March for the second consecutive month. The index registered 54 percent, which is 0.5 percentage point higher than the 53.5 percent reading that was reported in February. Of the total respondents in March, 26 percent indicated they do not have inventories or do not measure them. Comments from respondents include: “We are trying to keep more stock on key SKUs to meet unforecasted demand” and “Increased orders.”
The nine industries reporting an increase in inventories in March — listed in order — are: Arts, Entertainment & Recreation; Real Estate, Rental & Leasing; Construction; Wholesale Trade; Information; Transportation & Warehousing; Accommodation & Food Services; Retail Trade; and Utilities. The three industries reporting decreases in inventories in March are: Health Care & Social Assistance; Professional, Scientific & Technical Services; and Finance & Insurance. Six industries reported no change in Inventories in March compared to February.
| Inventories | %Higher | %Same | %Lower | Index | |||||||||||||||||
| Mar 2012 | 22 | 64 | 14 | 54.0 | |||||||||||||||||
| Feb 2012 | 20 | 67 | 13 | 53.5 | |||||||||||||||||
| Jan 2012 | 16 | 62 | 22 | 47.0 | |||||||||||||||||
| Dec 2011 | 19 | 59 | 22 | 48.5 |
Prices
Prices paid by non-manufacturing organizations for purchased materials and services increased at a slower rate in March. ISM’s Non-Manufacturing Prices Index for March registered 63.9 percent, 4.5 percentage points lower than the 68.4 percent reported in February. In March, the percentage of respondents reporting higher prices is 40 percent, the percentage indicating no change in prices paid is 58 percent, and 2 percent of the respondents reported lower prices.
Sixteen non-manufacturing industries reported an increase in prices paid during the month of March, in the following order: Arts, Entertainment & Recreation; Utilities; Wholesale Trade; Retail Trade; Educational Services; Professional, Scientific & Technical Services; Accommodation & Food Services; Public Administration; Real Estate, Rental & Leasing; Other Services; Finance & Insurance; Health Care & Social Assistance; Mining; Information; Transportation & Warehousing; and Construction. No industries reported a decrease in prices paid during March.
| Prices | %Higher | %Same | %Lower | Index | |||||||||||||||||
| Mar 2012 | 40 | 58 | 2 | 63.9 | |||||||||||||||||
| Feb 2012 | 41 | 55 | 4 | 68.4 | |||||||||||||||||
| Jan 2012 | 31 | 64 | 5 | 63.5 | |||||||||||||||||
| Dec 2011 | 23 | 70 | 7 | 62.0 |
Backlog of Orders
ISM’s Non-Manufacturing Backlog of Orders Index contracted in March after one month of growth. The index registered 49.5 percent, 3.5 percentage points lower than the 53 percent reported in February. Of the total respondents in March, 39 percent indicated they do not measure backlog of orders.
The five industries reporting an increase in order backlogs in March are: Construction; Educational Services; Utilities; Finance & Insurance; and Public Administration. The seven industries reporting lower backlog of orders in March — listed in order — are: Mining; Accommodation & Food Services; Other Services; Retail Trade; Professional, Scientific & Technical Services; Health Care & Social Assistance; and Wholesale Trade. Six industries reported no change in order backlogs for the month of March compared to February.
