Fra ISM:
NMI® at 55.5%
GDP Growing at 2.4%
Business Activity Index at 60.9%
New Orders Index at 56.2%
Employment Index at 53.1%
(Tempe, Arizona) – Economic activity in the non-manufacturing sector grew in January for the 120th 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, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management® (ISM®) Non-Manufacturing Business Survey Committee: “The NMI® registered 55.5 percent, which is 0.6 percentage point higher than the seasonally adjusted December reading of 54.9 percent. This represents continued growth in the non-manufacturing sector, at a slightly faster rate. The Non-Manufacturing Business Activity Index increased to 60.9 percent, 3.9 percentage points higher than the seasonally adjusted December reading of 57.0 percent, reflecting growth for the 126th consecutive month. The New Orders Index registered 56.2 percent; 0.9 percentage point higher than the seasonally adjusted reading of 55.3 percent in December. The Employment Index decreased 1.7 percentage points in January to 53.1 percent from the seasonally adjusted December reading of 54.8 percent. The Prices Index of 55.5 is 3.8 percentage points lower than the seasonally adjusted December reading of 59.3 percent, indicating that prices increased in January for the 32nd consecutive month. According to the NMI®, 12 non-manufacturing industries reported growth. The non-manufacturing sector exhibited continued growth in January. The respondents remain mostly positive about business conditions and the overall economy. Respondents continue to have difficulty with labor resources.”
The 12 non-manufacturing industries reporting growth in January — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Health Care & Social Assistance; Educational Services; Utilities; Accommodation & Food Services; Finance & Insurance; Retail Trade; Construction; Public Administration; Information; and Professional, Scientific & Technical Services. The six industries reporting a decrease in January — listed in order — are: Transportation & Warehousing; Wholesale Trade; Other Services; Arts, Entertainment & Recreation; Mining; and Real Estate, Rental & Leasing.
WHAT RESPONDENTS ARE SAYING
- “Outlook remains favorable for growth in 2020. Pricing on goods and services [are] stable, with little to no pricing escalations expected for the remainder of the first quarter, except for seasonal- and trade/tariff-related impacts on food products.” (Accommodation & Food Services)
- “Q1 sales are improving, which makes us more optimistic.” (Construction)
- “Cautious start to 2020. Looking forward with optimism and encouragement. Conditions are favorable.” (Finance & Insurance)
- “Closely monitoring China’s coronavirus and its potential impact on medical supplies like surgical masks and protective goggles.” (Health Care & Social Assistance)
- “The labor market continues to be a challenge, impacting capacity and pushing up costs. Despite this, overall business volume remains positive, with growth in key sectors for our business.” (Management of Companies & Support Services)
- “The oil and gas industry is off to a slow start in 2020, as oil prices dropped slightly to start the year. Companies continue to be highly disciplined about hiring direct employees or contractors and making capital investments that drive hiring. Several notable oil and gas companies announced layoffs in the first week of January 2020.” (Professional, Scientific & Technical Services)
- “Customer inquiries are strong to start the new year.” (Real Estate, Rental & Leasing)
- “Activity is fair overall, but with regional ups and downs. The West in general has been favorable due to snowfall increasing sales activity, while the East has been down due to warmer weather in key winter tire markets. Optimism for the month, however, is good.” (Wholesale Trade)
ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS*
JANUARY 2020
| Non-Manufacturing | Manufacturing | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Index | Series Index Jan | Series Index Dec | Percent Point Change | Direction | Rate of Change | Trend** (Months) | Series Index Jan | Series Index Dec | Percent Point Change |
| NMI®/ PMI® | 55.5 | 54.9 | +0.6 | Growing | Faster | 120 | 50.9 | 47.8 | +3.1 |
| Business Activity/ Production | 60.9 | 57.0 | +3.9 | Growing | Faster | 126 | 54.3 | 44.8 | +9.5 |
| New Orders | 56.2 | 55.3 | +0.9 | Growing | Faster | 126 | 52.0 | 47.6 | +4.4 |
| Employment | 53.1 | 54.8 | -1.7 | Growing | Slower | 71 | 46.6 | 45.2 | +1.4 |
| Supplier Deliveries | 51.7 | 52.5 | -0.8 | Slowing | Slower | 8 | 52.9 | 52.2 | +0.7 |
| Inventories | 46.5 | 51.0 | -4.5 | Contracting | From Growing | 1 | 48.8 | 49.2 | -0.4 |
| Prices | 55.5 | 59.3 | -3.8 | Increasing | Slower | 32 | 53.3 | 51.7 | +1.6 |
| Backlog of Orders | 45.5 | 47.5 | -2.0 | Contracting | Faster | 4 | 45.7 | 43.3 | +2.4 |
| New Export Orders | 50.1 | 51.0 | -0.9 | Growing | Slower | 3 | 53.3 | 47.3 | +6.0 |
| Imports | 55.1 | 48.0 | +7.1 | Growing | From Contracting | 1 | 51.3 | 48.8 | +2.5 |
| Inventory Sentiment | 54.9 | 60.0 | -5.1 | Too High | Slower | 271 | N/A | N/A | N/A |
| Customers’ Inventories | N/A | N/A | N/A | N/A | N/A | N/A | 43.8 | 41.1 | +2.7 |
| Overall Economy | Growing | Faster | 126 | ||||||
| Non-Manufacturing Sector | Growing | Faster | 120 | ||||||
