2017 Economic Calendar
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ISM Non-Mfg Index  
Released On 11/3/2017 10:00:00 AM For Oct, 2017
PriorConsensusConsensus RangeActual
Composite Index - Level59.8 58.6 56.0  to 60.0 60.1 

Highlights
ISM's non-manufacturing sample continues to report unusual strength, at a composite score of 60.1 which just tops Econoday's high estimate and is the strongest showing since the height of the previous expansion in 2004. New orders, at 62.8, are unusually strong with export orders at a very positive 60.0. Backlogs are up, inventories are building, and employment, at 57.5, is at a 6-month high. Delivery delays reflect the overall pace of activity and probably also lingering hurricane effects. Input prices are elevated but down from September.

ISM non-manufacturing, which has been strong all year, tracks not only services but also construction and mining, two industries reporting some of the greatest strength in the month and giving the report a general lift compared to this morning's service sector report from Markit which excludes these two industries and which shows less strength. But taken together, the reports point to steady and solid momentum for the bulk of the U.S. economy.

Recent History Of This Indicator
ISM non-manufacturing re-accelerated in September to 59.8 and the highest score in 3 years. Orders and employment in ISM's sample have been very strong while deliveries, tied to Hurricanes Harvey and Irma, have slowed sharply. Econoday's call for October is 58.6.

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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