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2008 Economic Calendar |
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Resource Center » U.S. & Intl Recaps | Release Dates | Why Investors Care | Today's Calendar
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The non-manufacturing ISM surveys nearly 400 firms from 60 sectors across the United States, including agriculture, mining, construction, transportation, communications, wholesale trade and retail trade. Financial market players monitor the business activity index, because a composite index, like its manufacturing cousin, is not compiled by the ISM. Why Investors Care
| Released on 5/3/06 For Apr 2006 | ||||||||||||
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Highlights
The Institute For Supply Management (ISM) non-manufacturing index showed strong and accelerating business conditions, at 63.0 in April vs. 60.5 in March. New orders have been on a tear in the last two months, rising to 64.6 from 59.5 in March and from 56.2 in February. Backlog orders also rose, to 54.0 in April from March's 50.5. Strong order data point to overall strong conditions in the months ahead.
Some of those conditions concern employment, which rose to 56.5 from 54.6. Note that Monday's ISM report on the manufacturing side also showed an increase in employment, to 55.8 from 52.5. These readings are very likely to raise expectations for a strong report in Friday's big employment data.
A big negative in the report, as it was on the manufacturing side, was a sharp rise and a plus-70 reading in prices paid, to 70.5 from 60.5. Strong growth, along of course with high energy prices, are posing inflation risks, something Federal Reserve policy makers, as well as the bond market, are certain to notice.
The report also showed a sharp rise inventories, due doubtlessly to expectations of strong business conditions ahead.
Bonds slid and the dollar firmed in immediate reaction to the data. The outlook for the stock market is mixed with any gains to be limited by higher interest rates in the bond market.
The business activity index from the ISM non-manufacturing inched up 0.4 percentage points in March to 60.5 after posting a larger rise in February. While the index level is not exceptionally high, it still reflects expanding business activity.
Business Activity Index Consensus Forecast for Apr 06: 59.7
Range: 58 to 62
![[Chart]](chart.gif)
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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. |
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