Business Activity at 52.4%; March Non-Manufacturing ISM Report On Business(R); New Orders Index at 53.8%; Employment Index at 50.8%.DO NOT CONFUSE con·fuse v. con·fused, con·fus·ing, con·fus·es v.tr. 1. a. To cause to be unable to think with clarity or act with intelligence or understanding; throw off. b. THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report's information reflects the entire United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of March 2007. TEMPE, Ariz. -- Business activity in the non-manufacturing sector increased at a slower rate in March 2007, say the nation's purchasing and supply Purchasing and Supply can have several different definitions. According to the Institute for Supply Management (ISM) [1], purchasing is defined as a major function of an organization that is responsible for acquisition of required materials, services, and equipment. executives in the latest Non-Manufacturing ISM Report On Business The Non-Manufacturing ISM Report on Business is a purchasing survey of the United States service economy, published by the Institute for Supply Management since June 1998. Its results are a popular economic indicator and forecaster. ([R]). The report was issued today by Anthony Nieves, C.P.M., CFPM CFPM Certified Food Protection Manager CFPM Canadian Forces Provost Marshal (Head of the Military Police in Canada) CFPM Center for Policy Modeling CFPM Certified Foodservice Purchasing Manager , chair of the Institute for Supply Management[TM] Non-Manufacturing Business Survey Committee; and senior vice president -- supply management for Hilton Hotels Corporation Hilton Hotels Corporation (NYSE: HLT) is one of the leading global hospitality companies. As of April 2007 there are 2,645 hotels and 485,000 rooms employing 105,000 people in more than 80 countries. . "Non-manufacturing business activity increased for the 48th consecutive month in March," Nieves said. He added, "Business Activity, New Orders and Employment increased at a slower rate in March than in February February: see month. . The Prices Index increased 9.5 percentage points this month to 63.3 percent. Ten non-manufacturing industries reported increased activity in March. Members' comments in March indicate a concern with fuel costs, the economy and the impact on business conditions. The overall indication in March is continued economic growth in the non-manufacturing sector, but at a slower pace than in February." TOP PERFORMING INDUSTRIES The 10 industries reporting growth in March -- listed in order -- are: Utilities; Educational Services; Other Services(c); Retail Trade; Finance & Insurance; Transportation & Warehousing; Health Care & Social Assistance; Professional, Scientific & Technical Services; Public Administration; and Construction. The four industries reporting decreased activity from February to March are: Management of Companies & Support Services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services ; Accommodation & Food Services food services Hospital services A 24/7 department in a hospital that provides for the nutritional needs of inpatients–eg, those needing special diets, preparing meals and transporting them to the floor and, through the cafeteria, the hospital staff and ; Information; and Arts, Entertainment & Recreation. WHAT RESPONDENTS In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. ARE SAYING ... * "Overall core business activity is slightly slower." (Finance & Insurance) * "Constant increases in fuel costs seem to be causing an economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. . Outlook remains cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op ." (Professional, Scientific & Technical Services) * "Business activity seems to have slowed with some brightness on the horizon." (Wholesale Trade) * "Market remains stable." (Information) * "Business is OK but not great. We will not get the price in the market. Making our year depends upon cost control." (Agriculture, Forestry, Fishing & Hunting) [TABLE OMITTED] (a) Non-Manufacturing ISM Report On Business([R]) data is seasonally adjusted Seasonally adjusted Mathematically adjusted by moderating a macroeconomic indicator (e.g., oil prices/imports) so that relative comparisons can be drawn from month to month all year. for Business Activity, New Orders, Prices and Employment. Manufacturing ISM See ISM band. Report On Business([R]) data is seasonally adjusted for New Orders, Production, Employment, Supplier Deliveries and Inventories. (b) Number of months moving in current direction COMMODITIES REPORTED UP / DOWN IN PRICE, and IN SHORT SUPPLY Commodities Up in Price Airfare air·fare n. Fare for travel by aircraft. Noun 1. airfare - the fare charged for traveling by airplane fare, transportation - the sum charged for riding in a public conveyance ; Car Rental; Car Service; #1 Diesel Fuel; #2 Diesel Fuel (2); Electricity (2); Freight/Shipping (3); Fuel (2); Gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by (5); Healthcare; #2 Heating Fuel; Hotel Costs (10); Lubricants lubricants preparations for the lubrication of passages to reduce frictional injury, e.g. oily preparations, including petroleum jelly, lanolin or water-soluble preparations such as methyl cellulose. ; Office Supplies Office supplies is the generic term that refers to all supplies regularly used in offices by businesses and other organizations, from private citizens to governments, who works with the collection, refinement, and output of information (colloquially referred to as "paper work"). ; Paper (38); Polyethylene polyethylene (pŏl'ēĕth`əlēn), widely used plastic. It is a polymer of ethylene, CH2=CH2, having the formula (-CH2-CH2-)n ; Stainless Bar; and Stretch Film. Commodities Down in Price No commodities are reported down in price. Commodities in Short Supply Building Materials Building materials used in the construction industry to create . These categories of materials and products are used by and construction project managers to specify the materials and methods used for . ; Construction Services/Contractors; Construction Materials; and Glass Bottles/Containers. Note: The number of consecutive months the commodity is listed is indicated after each item. MARCH 2007 NON-MANUFACTURING INDEX SUMMARIES Business Activity ISM's Non-Manufacturing Business Activity Index The Non-Manufacturing Business Activity Index is a seasonally adjusted index released by the Institute for Supply Management measuring business activity in the United States service economy as part of the Non-Manufacturing ISM Report on Business. in March registered 52.4 percent compared to the seasonally adjusted 54.3 percent registered in February, indicating a slower rate of growth in business activity in March. The implication implication In logic, a relation that holds between two propositions when they are linked as antecedent and consequent of a true conditional proposition. Logicians distinguish two main types of implication, material and strict. is that non-manufacturing business activity is continuing to increase for the 48th consecutive month. Ten industries reported increased business activity, and four reported decreased activity for the month of March. The industries reporting growth of business activity in March are: Utilities; Educational Services; Other Services(c); Retail Trade; Finance & Insurance; Transportation & Warehousing; Health Care & Social Assistance; Professional, Scientific & Technical Services; Public Administration; and Construction. The four industries reporting contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction of business activity in March are: Management of Companies & Support Services; Accommodation & Food Services; Information; and Arts, Entertainment & Recreation. [TABLE OMITTED] THE LAST 12 MONTHS [TABLE OMITTED] New Orders ISM's Non-Manufacturing New Orders Index decreased to 53.8 percent in March from the seasonally adjusted 54.8 percent registered in February. This indicates continued expansion of new orders, but at a slower rate than in February. Comments from members include: "February's business activity was lower than January January: see month. and December December: see month. . We are not sure if this is a seasonal trend or if there is a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the temporary labor market labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience "; and "General slowdown." Industries reporting growth of new orders in March are: Other Services(c); Utilities; Educational Services; Retail Trade; Construction; Professional, Scientific & Technical Services; Finance & Insurance; Wholesale Trade; and Public Administration. The industries reporting contraction of new orders in March are: Information; Health Care & Social Assistance; Accommodation & Food Services; Management of Companies & Support Services; and Arts, Entertainment & Recreation. [TABLE OMITTED] Employment Employment activity in the non-manufacturing sector increased at a slower rate in March compared to February. This was the 32nd consecutive monthly increase in non-manufacturing employment. ISM's Non-Manufacturing Employment Index for March is 50.8 percent, a 1.4 percentage point decrease from the seasonally adjusted 52.2 percent reported in February. Eight industries reported increased employment in March, six reported a decrease, and three indicated employment is unchanged from February. Comments from respondents include: "Negative outlook on the economy"; "Open positions filled"; and "Last hiring spree before economic slowdown." The industries reporting growth in employment in March are: Arts, Entertainment & Recreation; Other Services(c); Transportation & Warehousing; Utilities; Retail Trade; Educational Services; Wholesale Trade; and Public Administration. The six industries reporting a reduction in employment in March are: Accommodation & Food Services; Management of Companies & Support Services; Real Estate, Rental & Leasing; Construction; Health Care & Social Assistance; and Professional, Scientific & Technical Services. [TABLE OMITTED] Supplier Deliveries In March, the delivery performance of suppliers to non-manufacturing organizations registered 50 percent, 2.5 percentage points lower than in February. A reading above 50 percent indicates slower deliveries. Comments from purchasing and supply executives concerning supplier deliveries in March include: "Trend is toward improving; however, commodity shortages still abound in distribution transformer transformer, electrical device used to transfer an alternating current or voltage from one electric circuit to another by means of electromagnetic induction. segment"; and "Winter weather problems." The industries reporting slowing in supplier deliveries in March are: Transportation & Warehousing; Real Estate, Rental & Leasing; Utilities; Retail Trade; Health Care & Social Assistance; Wholesale Trade; and Professional, Scientific & Technical Services. The seven industries reporting faster supplier deliveries in March are: Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Finance & Insurance; Construction; Information; Educational Services; and Public Administration. [TABLE OMITTED] Inventories ISM's Non-Manufacturing Inventories Index registered 52 percent in March, an increase of 1.5 percentage points compared to February. Inventories are expanding for the second consecutive month after one month of contraction. Of the total respondents in March, 33 percent indicated they do not have inventories or do not measure them. Comments from members include: "Slower business activity"; "Area of concern to cut levels"; and "Sales are down, high inventory." The industries reporting increases in inventories in March are: Agriculture, Forestry, Fishing & Hunting; Other Services(c); Transportation & Warehousing; Educational Services; Utilities; Information; Real Estate, Rental & Leasing; and Retail Trade. The industries reporting decreases in inventories in March are: Finance & Insurance; Accommodation & Food Services; Arts, Entertainment & Recreation; Public Administration; Professional, Scientific & Technical Services; and Wholesale Trade. [TABLE OMITTED] Prices Prices paid by non-manufacturing organizations for purchased materials and services increased in March for the 46th consecutive month (following the recent seasonal adjustments). ISM's Non-Manufacturing Prices Index for March is 63.3 percent, 9.5 percentage points higher than February's seasonally adjusted index of 53.8 percent. In March, the percentage of respondents reporting higher prices increased by 21 percentage points to 38 percent as compared to February. The percentage indicating no change decreased from 74 percent in February to 58 percent in March. The percentage of respondents noting lower prices decreased from 9 percent in February to 4 percent in March. The industries reporting an increase in prices paid in March are: Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Wholesale Trade; Transportation & Warehousing; Retail Trade; Finance & Insurance; Utilities; Construction; Professional, Scientific & Technical Services; Arts, Entertainment & Recreation; Accommodation & Food Services; Public Administration; Educational Services; Management of Companies & Support Services; and Health Care & Social Assistance. The only industry reporting a decrease in prices in March is Information. [TABLE OMITTED] Backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of Orders ISM's Non-Manufacturing Backlog of Orders Index registered 52.5 percent in March, 5.5 percentage points higher than the 47 percent reported in February. This indicates that order backlogs are increasing after contracting for three consecutive months. Of the total respondents in March, 44 percent indicated they do not measure backlog of orders. Purchasing and supply executives' comments include: "Budget restrictions are limiting funds available for purchasing thus creating a backlog of requests"; "In-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. orders backlog is down approximately 20 percent, but will be back up next month (starting new orders). Forecast (sales) backlog hours remain the same." The industries reporting an increase in order backlogs in March are: Other Services(c); Utilities; Real Estate, Rental & Leasing; Accommodation & Food Services; Health Care & Social Assistance; Retail Trade; Construction; and Public Administration. The four industries reporting a decrease in order backlogs in March are: Management of Companies & Support Services; Information; Wholesale Trade; and Finance & Insurance. [TABLE OMITTED] New Export Orders Orders and requests for services and other non-manufacturing activities to be provided outside of the United States by domestically based personnel contracted in March for the first time after 20 consecutive months of expansion. The New Export Orders Index for March is 48.5 percent, compared to February's index of 59 percent. Of the total respondents in March, 74 percent indicated they either do not perform, or do not separately measure, orders for work outside of the United States. The industries reporting an increase in new export orders in March are: Arts, Entertainment & Recreation; Other Services(c); Retail Trade; and Finance & Insurance. The four industries reporting a decrease in new export orders in March are: Accommodation & Food Services; Information; Professional, Scientific & Technical Services; and Wholesale Trade. [TABLE OMITTED] Imports In March, the ISM Non-Manufacturing Imports Index registered 50 percent, 4 percentage points lower than February's index of 54 percent. In March, 65 percent of respondents reported that they do not use or do not track the use of imported materials. The industries reporting an increase in the use of imports in March are: Construction; Professional, Scientific & Technical Services; Retail Trade; and Wholesale Trade. The three industries reporting a decrease in imports for the month of March are: Information; Accommodation & Food Services; and Transportation & Warehousing. [TABLE OMITTED] Inventory Sentiment The ISM Non-Manufacturing Inventory Sentiment Index sentiment index A numerical guide to investor feeling toward the securities markets that is constructed to determine whether certain segments of the investment community are bullish or bearish. in March registered 63 percent, 1.5 percentage points higher than the 61.5 percent reported in February. This indicates that non-manufacturing purchasing and supply executives feel a greater discomfort Discomfort may refer to pain, an unpleasant sensation, or to suffering, an unpleasant feeling or emotion. with current levels of inventory in March than they did during February. In March, 32 percent of respondents felt their inventories were too high, 6 percent indicated their inventories were too low, and 62 percent said that their inventories were about right. The industries reporting a feeling that their inventories are too high in March are: Agriculture, Forestry, Fishing & Hunting; Other Services(c); Management of Companies & Support Services; Wholesale Trade; Construction; Information; Real Estate, Rental & Leasing; Retail Trade; Transportation & Warehousing; Professional, Scientific & Technical Services; and Accommodation & Food Services. The two industries reporting that their inventories are too low are: Utilities and Public Administration. [TABLE OMITTED] (c) Other Services include: Equipment & Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning dry-clean tr.v. dry-cleaned, dry-clean·ing, dry-cleans To clean (clothing or fabrics) with chemical solvents that have little or no water. dry cleaner n. & Laundry Laundry can be:
Before industrialization Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing pho·to·fin·ish·ing n. The act or business of developing camera films and printing photographs for customers. pho Services, Temporary Parking Services, and Dating Services. About this Report The data presented herein is obtained from a survey of non-manufacturing supply managers based on information they have collected within their respective organizations. ISM makes no representation, other than that stated within this release, regarding the individual company data collection procedures. Use of the data is in the public domain and should be compared to all other economic data sources when used in decision making. Data and Method of Presentation The Non-Manufacturing ISM Report On Business([R]) is based on data compiled from purchasing and supply executives nationwide. Membership of the Non-Manufacturing Business Survey Committee is diversified diversified (di·verˑ·s by NAICS NAICS North American Industry Classification System , based on each industry's contribution to gross domestic product (GDP GDP (guanosine diphosphate): see guanine. ). The Non-Manufacturing Business Survey Committee responses are divided into the following NAICS code categories: Agriculture, Forestry, Fishing & Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation & Warehousing; Information; Finance & Insurance; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Management of Companies & Support Services; Educational Services; Health Care & Social Assistance; Arts, Entertainment & Recreation; Accommodation & Food Services; Other Services(c); and Public Administration. Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (Business Activity, New Orders, Backlog of Orders, New Export Orders, Inventory Change, Inventory Sentiment, Imports, Prices, Employment and Supplier Deliveries), this report shows the percentage reporting each response, the net difference between the number of responses in the positive economic direction (higher and slower for Supplier Deliveries) and the negative economic direction (lower and faster for Supplier Deliveries). Responses represent raw data and are never changed. Data is seasonally adjusted for Business Activity, New Orders, Prices and Employment. The remaining indexes have not indicated significant seasonality. Diffusion indexes Diffusion Index 1. A measure of the percentage of stocks that have advanced in price or are showing a positive momentum over a defined period. It is used in the technical analysis of stocks. 2. have the properties of leading indicators Leading Indicator A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy, but are not always accurate. and are convenient summary measures showing the prevailing direction of change and the scope of change. An index reading above 50 percent indicates that the non-manufacturing economy in that index is generally expanding; below 50 percent indicates that it is generally declining. Supplier Deliveries is an exception. A Supplier Deliveries Index above 50 percent indicates slower deliveries and below 50 percent indicates faster deliveries. The Non-Manufacturing ISM Report On Business([R]) is published monthly by the Institute for Supply Management[TM], the largest supply management research and education organization in the United States. The Institute for Supply Management[TM], established in 1915, is the largest supply management organization in the world as well as one of the most respected. ISM's mission is to lead the supply management profession through its standards of excellence, research, promotional activities and education. The full text version of the Non-Manufacturing ISM Report On Business([R]) is posted on ISM's Web site at www.ism.ws on the third business day of every month after 10:10 a.m. (ET). The next Non-Manufacturing ISM Report On Business([R]) featuring the April 2007 data will be released at 10:00 a.m. (ET) on Thursday Thursday: see week. , May 3, 2007. |
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