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NMI at 53.3%; June Non-Manufacturing ISM Report On Business®; Business Activity Index at 53.4%; New Orders Index at 53.6%; Employment Index at 54.1%

Dépèche transmise le 6 juillet 2011 par Business Wire

TEMPE, Ariz.--(BUSINESS WIRE)--Economic activity in the non-manufacturing sector grew in June for the 19th consecutive month, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business^®.

“Higher level of spending due to more budgets approved for this fiscal year”

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 53.3 percent in June, 1.3 percentage points lower than the 54.6 percent registered in May, and indicating continued growth at a slower rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index decreased 0.2 percentage point to 53.4 percent, reflecting growth for the 23rd consecutive month, but at a slightly slower rate than in May. The New Orders Index decreased by 3.2 percentage points to 53.6 percent. The Employment Index increased 0.1 percentage point to 54.1 percent, indicating growth in employment for the 10th consecutive month and at a slightly faster rate than in May. The Prices Index decreased 8.7 percentage points to 60.9 percent, indicating that prices increased at a slower rate in June when compared to May. According to the NMI, 15 non-manufacturing industries reported growth in June. Respondents’ comments are mixed about the business climate and vary by industry and company. The most prominent concern remains about the volatility of prices.”

INDUSTRY PERFORMANCE (Based on the NMI)

The 15 non-manufacturing industries reporting growth in June based on the NMI composite index — listed in order — are: Real Estate, Rental & Leasing; Transportation & Warehousing; Wholesale Trade; Professional, Scientific & Technical Services; Mining; Construction; Other Services; Educational Services; Arts, Entertainment & Recreation; Public Administration; Management of Companies & Support Services; Accommodation & Food Services; Information; Utilities; and Retail Trade. The two industries reporting contraction in June are: Finance & Insurance; and Health Care & Social Assistance.

WHAT RESPONDENTS ARE SAYING …

• “Business is still up, although some softening seen over last month.” (Wholesale Trade)
• “Orders are remaining steady, and outlook for this year is positive.” (Professional, Scientific & Technical Services)
• “Economic activity continues to be sluggish.” (Management of Companies & Support Services)
• “Have yet to see a real spark that ignites new and invigorated business — still seems lethargic and mired in recession-related preventative moves, and no one sees a real improvement ahead.” (Public Administration)
• “Commodities coming down in price, which should help stabilize inflation.” (Retail Trade)

ISM NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM NON-MANUFACTURING AND ISM MANUFACTURING SURVEYS(a) JUNE 2011
Index			Non-Manufacturing													Manufacturing
		Series Index Jun		Series Index May		Percent Point Change		Direction		Rate of Change		Trend(b) (Months)			Series Index Jun		Series Index May		Percent Point Change
NMI/PMI			53.3		54.6		-1.3		Growing		Slower		19			55.3		53.5		+1.8
Business Activity/ Production			53.4		53.6		-0.2		Growing		Slower		23			54.5		54.0		+0.5
New Orders			53.6		56.8		-3.2		Growing		Slower		23			51.6		51.0		+0.6
Employment			54.1		54.0		+0.1		Growing		Faster		10			59.9		58.2		+1.7
Supplier Deliveries			52.0		54.0		-2.0		Slowing		Slower		15			56.3		55.7		+0.6
Inventories			53.5		55.0		-1.5		Growing		Slower		5			54.1		48.7		+5.4
Prices			60.9		69.6		-8.7		Increasing		Slower		23			68.0		76.5		-8.5
Backlog of Orders			48.5		55.0		-6.5		Contracting		From Growing		1			49.0		50.5		-1.5
New Export Orders			57.0		57.0		0.0		Growing		Same		10			53.5		55.0		-1.5
Imports			46.5		50.5		-4.0		Contracting		From Growing		1			51.0		54.5		-3.5
Inventory Sentiment			58.5		55.0		+3.5		Too High		Faster		169			N/A		N/A		N/A
Customers’ Inventories			N/A		N/A		N/A		N/A		N/A		N/A			47.0		39.5		+7.5

(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, Supplier Deliveries and Inventories.

(b) Number of months moving in current direction

COMMODITIES REPORTED UP / DOWN IN PRICE, and IN SHORT SUPPLY

Commodities Up in Price

Airfares (7); Can Liners (3); Cheese; Chemicals (2); Copy Paper; Cotton Products (10); #1 Diesel Fuel(c) (9); #2 Diesel Fuel(c) (12); Food & Beverage; Food Products (2); Fuel (18); Fuel Surcharges (6); Gasoline(c) (9); Gloves; Latex Gloves (6); Paper (8); Petroleum Products (6); Plastic Products (4); Plastics (3); and Polyethylene Film.

Commodities Down in Price

Cotton; #1 Diesel Fuel(c); #2 Diesel Fuel(c); and Gasoline(c).

Commodities in Short Supply

Fiber Optic Products; Medical Supplies; Plastic Products; Plenum Cable; and Tires.

Note: The number of consecutive months the commodity is listed is indicated after each item.

(c) Reported as both up and down in price.

JUNE 2011 NON-MANUFACTURING INDEX SUMMARIES

NMI

In June, the NMI registered 53.3 percent, indicating continued growth in the non-manufacturing sector for the 19th 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
					Jun 2011											53.3															Dec 2010											57.1
					May 2011											54.6															Nov 2010											56.0
					Apr 2011											52.8															Oct 2010											54.6
					Mar 2011											57.3															Sep 2010											53.9
					Feb 2011											59.7															Aug 2010											52.8
					Jan 2011											59.4															Jul 2010											53.7
					Average for 12 months – 55.4 High – 59.7 Low – 52.8

Business Activity

ISM’s Non-Manufacturing Business Activity Index in June registered 53.4 percent, a decrease of 0.2 percentage point when compared to the 53.6 percent registered in May. Ten industries reported increased business activity, and five industries reported decreased activity for the month of June. Comments from respondents include: “More consumer sales” and “Planned capital expenditures.”

The industries reporting growth of business activity in June — listed in order — are: Transportation & Warehousing; Arts, Entertainment & Recreation; Educational Services; Other Services; Public Administration; Wholesale Trade; Construction; Professional, Scientific & Technical Services; Management of Companies & Support Services; and Information. The five industries reporting decreased business activity in June are: Mining; Retail Trade; Health Care & Social Assistance; Finance & Insurance; and Accommodation & Food Services.

Business Activity						%Higher					%Same					%Lower					Index
Jun 2011						33					50					17					53.4
May 2011						29					57					14					53.6
Apr 2011						34					54					12					53.7
Mar 2011						37					52					11					59.7

New Orders

ISM’s Non-Manufacturing New Orders Index grew in June for the 23rd consecutive month. The index registered 53.6 percent, a decrease of 3.2 percentage points from the 56.8 percent reported in May. Comments from respondents include: “Higher level of spending due to more budgets approved for this fiscal year” and “Increase in national accounts business.”

The 11 industries reporting growth of new orders in June — listed in order — are: Real Estate, Rental & Leasing; Transportation & Warehousing; Educational Services; Arts, Entertainment & Recreation; Wholesale Trade; Accommodation & Food Services; Professional, Scientific & Technical Services; Mining; Other Services; Public Administration; and Management of Companies & Support Services. The four industries reporting contraction of new orders in June are: Agriculture, Forestry, Fishing & Hunting; Finance & Insurance; Retail Trade; and Health Care & Social Assistance.

New Orders						%Higher					%Same					%Lower					Index
Jun 2011						28					56					16					53.6
May 2011						32					54					14					56.8
Apr 2011						34					52					14					52.7
Mar 2011						36					55					9					64.1

Employment

Employment activity in the non-manufacturing sector grew in June, as ISM’s Non-Manufacturing Employment Index registered 54.1 percent. This reflects an increase of 0.1 percentage point when compared to the 54 percent registered in May. Fourteen industries reported increased employment, three industries reported decreased employment, and one industry reported unchanged employment compared to May. Comments from respondents include: “Continuing to fill backlog of positions” and “Hiring to get back to required staffing levels.”

The industries reporting an increase in employment in June — listed in order — are: Real Estate, Rental & Leasing; Mining; Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Public Administration; Construction; Professional, Scientific & Technical Services; Accommodation & Food Services; Retail Trade; Transportation & Warehousing; Wholesale Trade; Information; Finance & Insurance; and Other Services. The industries reporting a reduction in employment in June are: Educational Services; Health Care & Social Assistance; and Arts, Entertainment & Recreation.

Employment						%Higher					%Same					%Lower					Index
Jun 2011						27					61					12					54.1
May 2011						28					63					9					54.0
Apr 2011						26					63					11					51.9
Mar 2011						22					65					13					53.7

Supplier Deliveries

The Supplier Deliveries Index registered 52 percent in June, 2 percentage points lower than the 54 percent registered in May, indicating that supplier deliveries continued to slow in June. A reading above 50 percent indicates slower deliveries.

The seven industries reporting slower deliveries in June — listed in order — are: Retail Trade; Construction; Wholesale Trade; Utilities; Educational Services; Other Services; and Professional, Scientific & Technical Services. The three industries reporting faster supplier deliveries in June are: Finance & Insurance; Health Care & Social Assistance; and Transportation & Warehousing. Eight industries reported no change in supplier deliveries for the month of June compared to May.

Supplier Deliveries						%Slower					%Same					%Faster					Index
Jun 2011						9					86					5					52.0
May 2011						14					80					6					54.0
Apr 2011						10					86					4					53.0
Mar 2011						6					91					3					51.5

Inventories

ISM’s Non-Manufacturing Inventories Index registered 53.5 percent in June, 1.5 percentage points lower than the 55 percent reading that was reported in May. Of the total respondents in June, 29 percent indicated they do not have inventories or do not measure them. Comments from respondents include: “Working down inventory to desired level” and “Reducing non-performing inventory.”

The nine industries reporting an increase in inventories in June — listed in order — are: Real Estate, Rental & Leasing; Utilities; Wholesale Trade; Transportation & Warehousing; Management of Companies & Support Services; Accommodation & Food Services; Arts, Entertainment & Recreation; Mining; and Information. The seven industries reporting decreases in inventories in June — listed in order — are: Other Services; Professional, Scientific & Technical Services; Finance & Insurance; Construction; Public Administration; Retail Trade; and Health Care & Social Assistance.

Inventories						%Higher					%Same					%Lower					Index
Jun 2011						23					61					16					53.5
May 2011						26					58					16					55.0
Apr 2011						20					71					9					55.5
Mar 2011						20					71					9					55.5

Prices

Prices paid by non-manufacturing organizations for purchased materials and services increased in June. ISM’s Non-Manufacturing Prices Index for June registered 60.9 percent, 8.7 percentage points lower than the 69.6 percent reported in May. In June, the percentage of respondents reporting higher prices is 35 percent, the percentage indicating no change in prices paid is 58 percent, and 7 percent of the respondents reported lower prices.

Sixteen non-manufacturing industries reported an increase in prices paid, in the following order: Real Estate, Rental & Leasing; Accommodation & Food Services; Arts, Entertainment & Recreation; Mining; Wholesale Trade; Professional, Scientific & Technical Services; Management of Companies & Support Services; Transportation & Warehousing; Health Care & Social Assistance; Finance & Insurance; Utilities; Educational Services; Other Services; Retail Trade; Construction; and Public Administration. The only industry reporting a decrease in prices paid is Information.

Prices						%Higher					%Same					%Lower					Index
Jun 2011						35					58					7					60.9
May 2011						53					42					5					69.6
Apr 2011						57					41					2					70.1
Mar 2011						51					47					2					72.1

Backlog of Orders

ISM’s Non-Manufacturing Backlog of Orders Index contracted in June after five consecutive months of growth. The index registered 48.5 percent, 6.5 percentage points lower than the 55 percent reported in May. Of the total respondents in June, 43 percent indicated they do not measure backlog of orders.

The five industries reporting an increase in order backlogs in June are: Construction; Retail Trade; Other Services; Health Care & Social Assistance; and Wholesale Trade. The five industries reporting lower backlog of orders in June are: Utilities; Information; Professional, Scientific & Technical Services; Mining; and Finance & Insurance. Eight industries reported no change in order backlogs for the month of June compared to May.

Backlog of Orders						%Higher					%Same					%Lower					Index
Jun 2011						12					73					15					48.5
May 2011						18					74					8					55.0
Apr 2011						20					71					9					55.5
Mar 2011						20					72					8					56.0

New Export Orders