*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 APRIL 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 April for the 88th consecutive month, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM® Report On Business®.
The NMI® registered 57.5 percent.
This represents continued growth
NON-MANUFACTURING AT A GLANCE
in the non-manufacturing
sector at a faster rate. The Non-
Manufacturing Business Activity
Index increased to 62.4 percent, 3. 5
percentage points higher than the
March reading of 58.9 percent, reflecting growth for the 93rd
consecutive month, at a faster rate in April. The New Orders
Index registered 63.2 percent, 4. 3 percentage points higher
than the reading of 58.9 percent in March. The Employment
Index decreased 0.2 percentage point in April to 51.4 percent
from the March reading of 51.6 percent. Respondents’
comments are mostly positive about business conditions and
the overall economy. The 16 non-manufacturing industries
reporting growth in April — listed in order — are: Wholesale
Trade; Utilities; Arts, Entertainment & Recreation; Mining; Retail
Trade; Construction; Professional,
Scientific & Technical Services;
Information; Management of
Companies & Support Services;
Public Administration; Health Care
& Social Assistance; Real Estate,
Rental & Leasing; Other Services;
Finance & Insurance; Accommodation & Food Services; and
Transportation & Warehousing.
Index Apr Index Mar Index Point Change Direction Rate of Change Trend* (months)
NMI® 57.5 55.2 + 2. 3 Growing Faster 88
Business Activity 62.4 58.9 + 3. 5 Growing Faster 93
New Orders 63.2 58.9 + 4. 3 Growing Faster 93
Employment 51.4 51.6 -0.2 Growing Slower 38
Supplier Deliveries 53.0 51.5 + 1. 5 Slowing Faster 16
Inventories 52.5 48.5 + 4.0 Growing From Contracting 1
Prices 57.6 53.5 + 4. 1 Increasing Faster 13
Backlog of Orders 53.5 53.0 +0.5 Growing Faster 3
New Export Orders 65.5 62.5 + 3.0 Growing Faster 3
Imports 53.0 56.5 - 3. 5 Growing Slower 4
Inventory Sentiment 60.0 65.0 - 5.0 Too High Slower 239
OVERALL ECONOMY Growing Faster 93
Non-Manufacturing Sector Growing Faster 88
Commodities Up in Price: #1 Diesel Fuel ( 2); Beef ( 2); Chemical Products; Copper Pipe; Fuel Prices; Gasoline ( 2); Gloves; Labor —
Construction ( 2); Labor; Lettuce ( 2); Lumber; Poly Bags; Produce; Software; Steel Products ( 5); and Transportation Costs ( 2).
Commodities Down in Price: Bacon; Cheese ( 2); Copper Wire; and Maintenance Services.
Commodities in Short Supply: Labor ( 3); Labor — Construction (13); and IV Fluids.
Note: The number of consecutive months the commodity is listed is indicated after each item. *Reported as both up and down in price.
2017 2016 2015
48.9% = Non-Manufacturing Overall
Economy Breakeven Line
50% = Non-Manufacturing Economy
In April, the NMI® registered 57.5 percent, 2. 3 percentage points higher than the 55.2
percent registered in March, indicating continued growth in the non-manufacturing
sector for the 88th 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 overall
✣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).