Business Activity at 54.3%; February Non-Manufacturing ISM Report On Business(R); New Orders Index at 54.8%; Employment Index at 52.2%.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 February February: see month. 2007. TEMPE, Ariz. -- Business activity in the non-manufacturing sector increased at a slower rate in February 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 47th consecutive month in February," Nieves said. He added, "Business Activity and New Orders increased at a slower rate in February than in January January: see month. . Employment increased at a faster rate than in January. The Prices Index decreased 1.4 percentage points this month to 53.8 percent. Nine non-manufacturing industries reported increased activity in February. Members' comments in February are mixed concerning current business conditions. The overall indication in February is continued economic growth in the non-manufacturing sector, but at a slower pace than in January." TOP PERFORMING INDUSTRIES The nine industries reporting growth in February -- listed in order -- are: Other Services(d); Health Care & Social Assistance; Professional, Scientific & Technical Services; Educational Services; Utilities; Transportation & Warehousing; Real Estate, Rental & Leasing; 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 ; and Information. The nine industries reporting decreased activity from January to February are: Mining; Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; Construction; Retail Trade; 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 ; Public Administration; Finance & Insurance; and Wholesale Trade. 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 O * "Cautious optimism for continued growth albeit at a slower pace than 2006." (Finance & Insurance) * Business markets for professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. are flat from the prior month due to economic and political uncertainty globally. Travel-related services continue to be a challenge due to short supply." (Professional, Scientific & Technical Services) * "There seems to be a settling taking place with prices and vendor performance." (Retail Trade) * "Encouraged by economic indicators Economic indicators The key statistics of the economy that reveal the direction the economy is heading in; for example, the unemployment rate and the inflation rate. ." (Educational Services) * "Discretionary consumer business contracting overall, growing in highly differentiated and personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. offerings." (Accommodation & Food Services) [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 Asphalt asphalt (ăs`fôlt, –fălt), brownish-black substance used commonly in road making, roofing, and waterproofing. Chemically, it is a natural mixture of hydrocarbons. and Asphalt Products; Beef; Electricity; Energy; #2 Diesel Fuel; Freight/Shipping (2); Fuel(c); 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 (c) (4); Hotel Costs (9); Paper (37); Printing; and Soy Products. Commodities Down in Price Copper (2); Copper Products; Copper Wire; Fuel(c) (6); Gasoline(c) (2); Lumber lumber, term for timber that has been cut into boards for use as a building material. The major steps in producing lumber involve logging (the felling and preparation of timber for shipment to sawmills), sawing the logs into boards, grading the boards according to -- Pine, Plywood plywood, manufactured board composed of an odd number of thin sheets of wood glued together under pressure with grains of the successive layers at right angles. Laminated wood differs from plywood in that the grains of its sheets are parallel. , Spruce spruce, any plant of the genus Picea, evergreen trees or shrubs of the family Pinaceae (pine family) widely distributed in the Northern Hemisphere. The needles are angular in cross section, rather than flattened as in the related hemlocks and firs. and Treated; 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"). ; Pork pork, flesh of swine prepared as food, one of the principal commodities of the meatpacking industry. Pork has long been a staple food in most of the world, although religious taboos have limited its use, especially among Jews and Muslims. Products (2); and PVC PVC: see polyvinyl chloride. PVC in full polyvinyl chloride Synthetic resin, an organic polymer made by treating vinyl chloride monomers with a peroxide. Products (2). Commodities in Short Supply Contract Personnel; Drugs/Drug-Related Products (2); Fiberglass fiberglass, thread made from glass. It is made by forcing molten glass through a kind of sieve, thereby spinning it into threads. Fiberglass is strong, durable, and impervious to many caustics and to extreme temperatures. Pipe and Fittings; Purchasing and Contracts Professionals; and Skilled Labor (2). Note: The number of consecutive months the commodity is listed is indicated after each item. (c) Reported as both up and down in price. FEBRUARY 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 February registered 54.3 percent compared to the seasonally adjusted 59 percent registered in January, indicating a slower rate of growth in business activity in February. 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 47th consecutive month. Nine industries reported increased business activity, and nine reported decreased activity for the month of February. The industries reporting growth of business activity in February are: Other Services(d); Health Care & Social Assistance; Professional, Scientific & Technical Services; Educational Services; Utilities; Transportation & Warehousing; Real Estate, Rental & Leasing; Accommodation & Food Services; and Information. The nine 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 February are: Mining; Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; Construction; Retail Trade; Management of Companies & Support Services; Public Administration; Finance & Insurance; and Wholesale Trade. [TABLE OMITTED] THE LAST 12 MONTHS [TABLE OMITTED] New Orders ISM's Non-Manufacturing New Orders Index decreased to 54.8 percent in February from the seasonally adjusted 55.4 percent registered in January. This indicates continued expansion of new orders, but at a slower rate than in January. Comments from members include: "Fewer leads or prospects"; "Concern over economy, energy prices, but most of all healthcare"; and "Decline in housing markets." Industries reporting growth of new orders in February are: Other Services(d); Accommodation & Food Services; Transportation & Warehousing; Health Care & Social Assistance; Utilities; Professional, Scientific & Technical Services; Educational Services; and Public Administration. The industries reporting contraction of new orders in February are: Mining; Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Arts, Entertainment & Recreation; Construction; Retail Trade; Real Estate, Rental & Leasing; Finance & Insurance; and Wholesale Trade. [TABLE OMITTED] Employment Employment activity in the non-manufacturing sector increased at a faster rate in February compared to January. This was the 31st consecutive monthly increase in non-manufacturing employment. ISM's Non-Manufacturing Employment Index for February is 52.2 percent, a 0.5 percentage point increase from the seasonally adjusted 51.7 percent reported in January. Seven industries reported increased employment, eight reported a decrease, and three indicated employment is unchanged from January. Comments from respondents include: "Planned workforce reduction of 10 percent"; "Layoffs because of slowing sales"; and "Ramping for more upcoming work." The industries reporting growth in employment in February are: Other Services(d); Transportation & Warehousing; Health Care & Social Assistance; Educational Services; Professional, Scientific & Technical Services; Public Administration; and Retail Trade. The eight industries reporting a reduction in employment in February are: Mining; Arts, Entertainment & Recreation; Construction; Real Estate, Rental & Leasing; Accommodation & Food Services; Finance & Insurance; Utilities; and Wholesale Trade. [TABLE OMITTED] Supplier Deliveries In February, the delivery performance of suppliers to non-manufacturing organizations was slower than in January. The index registered 52.5 percent, 1 percentage point lower than in January, indicating slowing at a slower rate. A reading above 50 percent indicates slower deliveries. Comments from purchasing and supply executives concerning supplier deliveries in February include: "Delay in manufacturer supplies"; "Winter weather"; and "Worldwide demand is up." The industries reporting slowing in supplier deliveries in February are: Other Services(d); Wholesale Trade; Accommodation & Food Services; Professional, Scientific & Technical Services; Health Care & Social Assistance; and Public Administration. The four industries reporting faster supplier deliveries in February are: Agriculture, Forestry, Fishing & Hunting; Retail Trade; Finance & Insurance; and Utilities. [TABLE OMITTED] Inventories ISM's Non-Manufacturing Inventories Index registered 50.5 percent in February, an increase of 3.5 percentage points compared to January. Inventories are expanding after a one-month contraction. Of the total respondents in February, 33 percent indicated they do not have inventories or do not measure them. Comments from members include: "Sales lower than forecast" and "Increase of work and extended deliveries are requiring bigger inventory levels." The industries reporting increases in inventories in February are: Health Care & Social Assistance; Information; Professional, Scientific & Technical Services; Utilities; and Finance & Insurance. The industries reporting decreases in inventories in February are: Real Estate, Rental & Leasing; Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; Management of Companies & Support Services; Transportation & Warehousing; Accommodation & Food Services; Retail Trade; Public Administration; and Wholesale Trade. [TABLE OMITTED] Prices Prices paid by non-manufacturing organizations for purchased materials and services increased in February for the 45th consecutive month (following the recent seasonal adjustments). ISM's Non-Manufacturing Prices Index for February is 53.8 percent, 1.4 percentage points lower than January's seasonally adjusted index of 55.2 percent. In February, the percentage of respondents reporting higher prices decreased by 6 percentage points to 17 percent as compared to January. The percentage indicating no change increased from 62 percent in January to 74 percent in February. The percentage of respondents noting lower prices decreased from 15 percent in January to 9 percent in February. The industries reporting an increase in prices paid in February are: Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; Accommodation & Food Services; Utilities; Health Care & Social Assistance; Public Administration; Wholesale Trade; Finance & Insurance; and Professional, Scientific & Technical Services. The three industries reporting a decrease in prices in February are: Information; Retail Trade; and Educational Services. [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 47 percent in February, 2 percentage points lower than the 49 percent reported in January. This indicates that order backlogs are contracting for the third consecutive month. Of the total respondents in February, 45 percent indicated they do not measure backlog of orders. Purchasing and supply executives' comments include: "Less new start orders"; and "Due to 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. , we are able to get backlog orders out and shipped." The industries reporting an increase in order backlogs in February are: Other Services(d) and Public Administration. The seven industries reporting a decrease in order backlogs in February are: Management of Companies & Support Services; Construction; Educational Services; Real Estate, Rental & Leasing; Retail Trade; Information; and Wholesale Trade. [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 increased for the 20th consecutive month in February. The February index marks 42 of the past 43 months that the index has exhibited growth. The New Export Orders Index for February is 59 percent, compared to January's index of 55 percent. Of the total respondents in February, 72 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 February are: Arts, Entertainment & Recreation; Information; Professional, Scientific & Technical Services; Accommodation & Food Services; Wholesale Trade; Finance & Insurance; and Retail Trade. The two industries reporting a decrease in new export orders in February are: Construction and Mining. [TABLE OMITTED] Imports In February, the ISM Non-Manufacturing Imports Index registered 54 percent, 2 percentage points higher than January's index of 52 percent, indicating that use of imports increased in February for the 13th consecutive month, at a faster rate than in January. In February, 66 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 February are: Transportation & Warehousing; Information; Accommodation & Food Services; and Other Services(d). The three industries reporting a decrease in imports for the month of February are: Public Administration; Arts, Entertainment & Recreation; and Retail Trade. [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 February registered 61.5 percent, 4 percentage points lower than the 65.5 percent reported in January. This indicates that non-manufacturing purchasing and supply executives feel less discomfort Discomfort may refer to pain, an unpleasant sensation, or to suffering, an unpleasant feeling or emotion. with current levels of inventory in February than they did during January. In February, 30 percent of respondents felt their inventories were too high, 7 percent indicated their inventories were too low, and 63 percent said that their inventories were about right. The industries reporting a feeling that their inventories are too high in February are: Other Services(d); Finance & Insurance; Transportation & Warehousing; Management of Companies & Support Services; Accommodation & Food Services; Construction; Wholesale Trade; Information; Health Care & Social Assistance; and Retail Trade. The two industries reporting that their inventories are too low are: Agriculture, Forestry, Fishing & Hunting; and Real Estate, Rental & Leasing. [TABLE OMITTED] (d) 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(d); 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 March 2007 data will be released at 10:00 a.m. (ET) on Wednesday Wednesday: see week. , April 4, 2007. |
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