2012 Economic Calendar
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ISM Non-Mfg Index
Released On 6/5/2012 10:00:00 AM For May, 2012
PriorConsensusConsensus RangeActual
Composite Index - Level53.5 53.5 52.0  to 55.1 53.7 

Highlights
Employment growth slowed in the bulk of the economy during May according to the ISM's non-manufacturing report, but that's no surprise following Friday's employment report from the government. What is a pleasant surprise in the ISM report is strength through most categories especially orders. New orders rose 2 points to 55.5 to indicate accelerating monthly growth. Monthly growth in backlogs is the same as in April, at 53.0 which is a solid rate for this reading.

Business activity also picked up further in May while price pressures, primarily reflecting fuel, have evaporated. The supply chain may be getting a little congested with activity as deliveries slowed and inventories rose.

A negative in the report is slowing in export orders, down 5 points though the rate of monthly growth is still respectable at 53.0. Here Europe and China are at play. The overall composite, held down by employment, still came in slightly higher than expected at 53.7. The Dow is moving higher following this report where, again, orders look good.

Market Consensus before announcement
The composite index from the ISM non-manufacturing survey slowed sharply in April to 53.5 from a very strong 56.0 in March. New orders posted their lowest monthly growth in six months as did business activity which in this report refers to output. The new orders index eased to 53.5 from 58.8 in March. The ISM's sample added jobs in April but at the slowest pace of the year.

Definition
The non-manufacturing ISM surveys more than 375 firms from numerous sectors across the United States. This index covers services, construction, mining, agriculture, forestry, and fishing and hunting. The non-manufacturing composite index has four equally weighted components: business activity (closely related to a production index), new orders, employment, and supplier deliveries (also known as vendor performance). The first three components are seasonally adjusted but the supplier deliveries index does not have statistically significant seasonality and is not adjusted. For the composite index, a reading above 50 percent indicates that the non-manufacturing economy is generally expanding; below 50 percent indicates that it is generally declining. The supplier deliveries component index requires extra explanation. A reading above 50 percent indicates slower deliveries and below 50 percent indicates faster deliveries. However, slower deliveries are a plus for the economy—indicating demand is up and vendors are not able to fill orders as quickly.  Why Investors Care
 
[Chart]
The ISM non-manufacturing survey does not compile a composite index like its manufacturing cousin. The business activity index, which is actually akin to the production index in the manufacturing survey, is widely followed as the key figure from this survey.
Data Source: Haver Analytics
 

 

2012 Release Schedule
Released On: 1/52/33/54/45/36/57/58/39/610/311/512/5
Release For: DecJanFebMarAprMayJunJulAugSepOctNov
 


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