2017 Economic Calendar
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ISM Non-Mfg Index  
Released On 6/5/2017 10:00:00 AM For May, 2017
PriorConsensusConsensus RangeActual
Composite Index - Level57.5 57.0 56.5  to 58.0 56.9 

Highlights
The ISM non-manufacturing index comes in just about as expected, at 56.9 vs Econoday's consensus for 57.0. This is a very solid rate of growth that reflects strength in business activity (output), at 60.7, and new orders at 57.7. ISM's sample reported noticeable strength in employment which however, at 57.8, contrasts with last week's weak employment report for May. Backlogs are also unusually strong in the May report, at 57.0, which helps explain the month's strength in hiring. The sample is building inventories in a sign of confidence with input costs, which had shown prior pressure, now flat. But this report is far from flat, continuing to point to rates of growth that the actual economy has failed to match.

Recent History Of This Indicator
ISM non-manufacturing stood out last year as reporting consistently strong results, stronger perhaps than actual growth. New orders have been over 60 in three of the last five reports and have been getting a boost from exports. Delivery times are slowing and input costs rising, both consistent with strong demand. April's strong index of 57.5 didn't match what were mostly weak results in the month's government data yet forecasters don't see much of a give back in ISM's index, at a consensus 57.0.

Definition
The Institute For Supply Management surveys more than 375 firms from numerous sectors across the United States for its non-manufacturing index. 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
 
 

2017 Release Schedule
Released On: 1/52/33/34/55/36/57/68/39/610/411/312/5
Release For: DecJanFebMarAprMayJunJulAugSepOctNov
 


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