2018 Economic Calendar
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ISM Non-Mfg Index  
Released On 4/4/2018 10:00:00 AM For Mar, 2018
PriorConsensusConsensus RangeActual
Composite Index - Level59.5 59.0 57.0  to 60.0 58.8 

Highlights
Unusual strength eased a bit in March for ISM's non-manufacturing sample as the index came in near expectations at 58.8 vs 59.5 and 59.9 in the two prior months. Growth in new orders remains very strong though the index is now under 60, at 59.5, for the first time since December. A key positive, however, and one for the outlook on Friday's employment report is a 1.6 point rise in employment to 56.6 which is strong for this reading.

Capacity stress in this sample is evident with supplier deliveries lengthening very sharply, up 3.0 points to 58.5, and input prices up a half point to a very hot 61.5 for a third straight plus 60 showing.

This report, in distinction to the services PMI released earlier this morning, includes mining, which was the strongest of 17 sectors in the March report, and also construction which includes specific comments on tariff effects, that price volatility for construction-related materials including steel and aluminum are disrupting business plans.

The employment result is strong as is once again the breadth of this report, underscored by the industry score which shows 15 reporting monthly growth and only 2 reporting contraction.

Consensus Outlook
The ISM non-manufacturing index toyed with the 60 level in January and February but, at a consensus 59.0, isn't expected to breakthrough in March. Yet order readings, whether for new orders or export orders or backlogs, have all been building and look certain to support business activity and employment in the March report.

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
 
 

2018 Release Schedule
Released On: 1/52/53/54/45/36/57/58/39/610/311/512/5
Release For: DecJanFebMarAprMayJunJulAugSepOctNov
 


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