*Number of months moving in current direction. Non-Manufacturing ISM® Report On Business® data is seasonally
adjusted for the Business Activity, New Orders, Prices and Employment Indexes.
NON-MANUFACTURING MARCH 2017 Analysis by Anthony Nieves, CPSM, C. P. M., A.P.P., CFPM, Chair of the Institute for Supply Management® Non-Manufacturing Business
Economic activity in the non-manufacturing sector grew in March for the 87th consecutive month, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM® Report On Business®.
The NMI® registered 55.2 percent.
This represents continued growth
in the non-manufacturing sector
at a slower rate. The New Orders
Index registered 58.9 percent, 2. 3
percentage points lower than the
reading of 61.2 percent in February.
The Employment Index decreased 3. 6 percentage points
NON-MANUFACTURING AT A GLANCE
in March to 51.6 percent from the February reading of 55.2
percent. The Prices Index decreased 4. 2 percentage points
from the February reading of 57.7 percent to 53.5 percent. The
majority of respondents’ comments indicate a positive outlook
on business conditions and the overall economy. There were
several comments about the uncertainty of future government
policies on health care, trade and immigration, and the
potential impact on business. The 15 non-manufacturing
industries reporting growth in March — listed in order — are:
Management of Companies & Support Services; Utilities;
Wholesale Trade; Mining; Real
Estate, Rental & Leasing; Arts,
Entertainment & Recreation;
Accommodation & Food Services;
Retail Trade; Health Care & Social
Assistance; Agriculture, Forestry,
Fishing & Hunting; Transportation
& Warehousing; Construction; Finance & Insurance; Other
Services✣; and Public Administration.
Index Mar Index Feb Index Point Change Direction Rate of Change Trend* (months)
NMI® 55.2 57.6 - 2. 4 Growing Slower 87
Business Activity 58.9 63.6 - 4. 7 Growing Slower 92
New Orders 58.9 61.2 - 2. 3 Growing Slower 92
Employment 51.6 55.2 - 3. 6 Growing Slower 37
Supplier Deliveries 51.5 50.5 + 1.0 Slowing Faster 15
Inventories 48.5 52.0 - 3. 5 Contracting From Growing 1
Prices 53.5 57.7 - 4. 2 Increasing Slower 12
Backlog of Orders 53.0 54.0 - 1.0 Growing Slower 2
New Export Orders 62.5 57.0 + 5. 5 Growing Faster 2
Imports 56.5 51.0 + 5. 5 Growing Faster 3
Inventory Sentiment 65.0 64.5 +0.5 Too High Faster 238
OVERALL ECONOMY Growing Slower 92
Non-Manufacturing Sector Growing Slower 87
Commodities Up in Price: #1 Diesel Fuel; Bacon ( 2); Beef; Concrete Ready Mix; Copper ( 6); Copper Products; Gasoline; Highway and
Road Construction Services; Labor — Construction; Labor — Temporary ( 2); Laboratory Supplies; Lettuce; Lumber — Pine, Plywood and
Spruce ( 2); Medical Supplies; Memory Products; Nitrile Gloves; Plastic Film Wrap; Polypropylene Products; Software Maintenance ( 2);
Steel Products ( 4); and Transportation Costs*.
Commodities Down in Price: Cheese; Computer Accessories; and Transportation Costs*.
Commodities in Short Supply: Labor — Construction ( 12); Labor — Temporary; Labor ( 2); and Memory Products.
2017 2016 2015
48.9% = Non-Manufacturing Overall
Economy Breakeven Line
50% = Non-Manufacturing Economy
In March, the NMI® registered 55.2 percent, 2. 4 percentage points lower than
the 57.6 percent registered in February, indicating continued growth in the non-manufacturing sector for the 87th 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. An NMI®
above 48.9 percent, over a period of time, generally indicates an expansion of the
✣Other Services (services such as Equipment & Machinery Repairing; Promoting or
Administering Religious Activities; Grantmaking; Advocacy;and Providing Dry-Cleaning
& Laundry Services, Personal Care Services, Death Care Services, Pet Care Services,
Photofinishing Services, Temporary Parking Services and Dating Services).