Economic activity in the non-manufacturing sector grew in May for the 29th 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 registered 53.7 percent in May, 0.2 percentage point higher than the 53.5 percent registered in April. This indicates continued growth this month at a slightly faster rate in the non-manufacturing sector.
The Non-Manufacturing Business Activity Index registered 55.6 percent, which is 1 percentage point higher than the 54.6 percent reported in April, reflecting growth for the 34th consecutive month.
The New Orders Index increased by 2 percentage points to 55.5 percent, and the Employment Index decreased by 3.4 percentage points to 50.8 percent, indicating continued growth in employment at a slower rate.
The Prices Index decreased 3.8 percentage points to 49.8 percent, indicating lower month-over-month prices for the first time since July 2009.
According to the NMI, 13 non-manufacturing industries reported growth in May. The majority of the respondents' comments are positive and optimistic about business conditions and the direction of the economy."
The 13 non-manufacturing industries reporting growth in May — listed in order — are:
- Information
- Transportation & Warehousing
- Accommodation & Food Services
- Management of Companies & Support Services
- Educational Services
- Wholesale Trade
- Construction
- Retail Trade
- Real Estate, Rental & Leasing
- Professional, Scientific & Technical Services
- Finance & Insurance
- Utilities
- Public Administration
The three industries reporting contraction in May are:
- Arts, Entertainment & Recreation
- Health Care & Social Assistance
- Mining
What Respondents are Saying
- "Q2 will be a strong quarter for us; the building market is starting to wake up." (Construction)
- "Increased activity and resources related to projects." (Finance & Insurance)
- "The upswing in consumer confidence has led to increased business." (Arts, Entertainment & Recreation)
- "While we tend to remain optimistic about the economy, our numbers do not show a surge in activity. It appears consumers are maintaining their 'let's wait and see' attitude." (Accommodation & Food Services)
- "Business outlook is flat for the remainder of 2012 with emphasis on cost containment, restructuring and cost-savings projects." (Professional, Scientific & Technical Services)
- "Business is still strong, but we have seen some softening in growth since mid-March." (Wholesale Trade)
Institute for Supply Management - May 2012 Non-Manufacturing ISM Report On Business