FREE SUBSCRIPTION Includes: The Advisor Daily eBlast + Exclusive Content + Professional Network Membership: JOIN NOW LOGIN
Skip Navigation LinksHome / News / Read News


ISM: Services Sector Grew at a Slightly Faster Pace in May

June 06, 2012, 07:00 AM
Filed Under: Economy

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

Comments From Our Members

You must be an Equipment Finance Advisor member to post comments. Login or Join Now.