Subscribe to our free, weekly email newsletter!


ISM non-manufacturing data remains in positive territory in November

By Jeff Berman, Group News Editor
December 04, 2013

Despite seeing sequential declines for its key metrics, non-manufacturing activity again showed growth in November, according to the Institute for Supply Management’s (ISM) Non-Manufacturing Report on Business.

The ISM’s index to measure growth—the NMI—dropped 1.5 percent to 53.9 in November. A reading above 50 represents growth. ISM said that economic activity in the non-manufacturing sector grew in November for the 47th consecutive month. The November NMI is slightly below the 12-month average of 54.9.

Of the four key metrics in the report, including the NMI, all were down in November, with Business Activity/Production down 4.2 percent to 55.5 while growing for the 52nd straight month and Employment was down 3.7 percent to 52.5. New Orders were off only slightly, falling 0.4 percent to 56.4 while showing growth for 52 straight months.

“Looking at the four key metrics that make up the NMI, things are generally still strong in the non-manufacturing sector,” said Tony Nieves, chair of the ISM’s Non-Manufacturing Business Survey Committee, in an interview. “New Orders were only down a little bit and Business Activity/Production has come off a bit, but it could be a reflection of cycle time gearing up. Employment is a cycle time issue as companies gear up for meeting their capacity heading into the holidays so they don’t have to go through the indoctrination of hiring and training and related things.”

Nieves said ISM did not anticipate Employment staying at its October level, which was especially strong.

Supplier Deliveries inched up 2.0 percent to 51.0, with a reading above 50 percent indicating slower deliveries, and a reading below 50 percent indicating faster deliveries. Inventories were off 0.5 percent to 54.0, and Prices dropped 3.9 percent to 52.2. Backlog of Orders was down 1.0 percent to 49.0.

“Overall, when looking at the comments [from ISM member respondents] in the report in conjunction with the data, there is a degree of optimism in it, while there will always be some level of uncertainty, too, with things like government policy issues, among others,” noted Nieves. “The prevailing mood of our respondents is one of optimism right now. There is also a little bit of a loosening of consumer purse strings occurring as well as it relates to overall confidence.”

Looking ahead, Nieves said December is likely to be in the same range as November, based on New Orders remaining relatively strong. In a worst-case scenario, he said New Orders could be “sideways,” but is expecting an uptick.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Key sanctions are unlikely to be fully removed until Congress lifts the U.S. embargo on Cuba – something unlikely to take place before 2018 when incumbent president Raúl Castro is expected to step down

The PMI, the ISM’s index to measure growth inched up 0.7 percent to 53.5 over May’s 52.8. This reading marks sequential growth for the third month in a row, which was preceded by five months of sequential declines.

Foreign direct investment has never been more important in catalyzing growth, whether in the developed or developing world. Although equity markets around the world have largely recovered since the financial crisis, global capital flows have contracted sharply.

When it comes to the chances of the December 31, 2015 Positive Train Control (PTC) deadline being extended, something which railroads say is badly needed, it appears they need to be prepared to be disappointed. That was the chief takeaway of a statement from Sarah Feinberg, acting administrator of the United States Department of Transportation’s Federal Railroad Administration (FRA).

It’s said that innovation will lead the economy out of its current funk. But how does an organization become a perpetually innovative company? That’s one of the questions Kai Engel and his co-authors at A.T. Kearney set out to answer in their new book Masters Of Innovation.

Article Topics

News · ISM · NMI · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA