2018 Economic Calendar
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ISM Non-Mfg Index  
Released On 8/3/2018 10:00:00 AM For Jul, 2018
PriorConsensusConsensus RangeActual
Composite Index - Level59.1 58.8 57.9  to 59.0 55.7 

Highlights
There was slowing in the PMI services index earlier this morning and slowing is clearly the theme of the ISM non-manufacturing report. This report usually hits expectations but July's 55.7 is more than 3 points under Econoday's consensus and more than 2 points under the low estimate.

Like the PMI services report, both new orders, down more than 5 points to 57.0, and backlog orders, down 5 points to 51.5, show softening. Export orders in this report, at 58.0, remain very strong but are down 2.5 points.

Business activity also slowed, down nearly 7.5 points to 56.5 with delivery times showing less stress. Input prices remain highly elevated at 63.4, up nearly 3 points in the month.

Slowing is not only the theme of today's service reports but was also the theme of ISM's manufacturing report on Wednesday. The economy may have taken a breather in July which, given what appear to be approaching limits on capacity, could prove a long-term plus for the economy.

Consensus Outlook
A standout showing of 63.2 in June's new order index points squarely at another month of exceptional strength for the ISM non-manufacturing index in July where the consensus is 58.8. A special plus in the June report was a slight cooling in delivery times, input costs, and order backlogs.

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 index is an equally weighted composite of four separate components: business activity, new orders, employment, and supplier deliveries. The report tracks 17 industries, 15 of which are from the services sector as well as mining and construction.
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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