Business Activity at 59%; January Non-Manufacturing ISM Report On Business(R); New Orders Index at 55.4%; Employment Index at 51.7%.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 January January: see month. 2007. This report reflects the U.S. Department of Commerce's recently completed annual adjustment to seasonal factors used to calculate the indexes. TEMPE, Ariz. -- Business activity in the non-manufacturing sector increased at a faster rate in January 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 46th consecutive month in January," Nieves said. He added, "Business Activity increased at a faster rate in January than in December December: see month. . New Orders and Employment increased at slower rates than in December. The Prices Index decreased 4.5 percentage points this month to 55.2 percent. Seven non-manufacturing industries reported increased activity in January. Members' comments in January are mostly positive concerning current business conditions. The overall indication in January is continued economic growth in the non-manufacturing sector at a faster pace than in December." TOP PERFORMING INDUSTRIES The seven industries reporting growth in January -- listed in order -- are: Utilities; Transportation & Warehousing; Professional, Scientific & Technical Services; Information; Other Services(d); Finance & Insurance; and Health Care & Social Assistance. The three industries reporting activity the same as last month are: Agriculture, Forestry, Fishing & Hunting; Wholesale Trade; and Real Estate, Rental & Leasing. The seven industries reporting decreased activity from December to January are: Arts, Entertainment & Recreation; 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 ; 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 ; Educational Services; Public Administration; Retail Trade; and Construction. 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 * "Revenue is better and costs are starting to come down -- especially petroleum-related costs." (Agriculture, Forestry, Fishing & Hunting) * "Activity continues to exceed plans." (Health Care & Social Assistance) * "Our sales continue to lag behind expectations, causing plans for deeper cost-cutting measures." (Retail Trade) * "2007 off to a brisk Brisk as a proper name may refer to:
* "More requests for services, particularly offshoring
Offshoring describes the relocation of business processes from one country to another. ." (Professional, Scientific & Technical 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 Indexes reflect newly released seasonal adjustment factors. COMMODITIES REPORTED UP / DOWN IN PRICE, and IN SHORT SUPPLY Commodities Up in Price Acoustical a·cous·tic adj. also a·cous·ti·cal 1. Of or relating to sound, the sense of hearing, or the science of sound. 2. a. Designed to carry sound or to aid in hearing. b. Tile; 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 ; Aluminum; Copier Paper; Freight/Shipping; 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) (3); Healthcare; Health Insurance; Hotel Costs (8); Medical Supplies; 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"). and Equipment; Paper (36); 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. ; Stainless Steel stainless steel: see steel. stainless steel Any of a family of alloy steels usually containing 10–30% chromium. The presence of chromium, together with low carbon content, gives remarkable resistance to corrosion and heat. ; and Steel (3). Commodities Down in Price Carbon Steel; Copper; Fuel (5); Gasoline(c); Natural Gas; Polyethylene polyethylene (pŏl'ēĕth`əlēn), widely used plastic. It is a polymer of ethylene, CH2=CH2, having the formula (-CH2-CH2-)n Products (2); 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; 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. Commodities in Short Supply Drugs/Drug-Related Products; Skilled Labor; and Tires. Note: The number of consecutive months the commodity is listed is indicated after each item. (c) Reported as both up and down in price. JANUARY 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 January registered 59 percent compared to the seasonally adjusted 56.7 percent registered in December, indicating a faster rate of growth in business activity in January. 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 46th consecutive month. Seven industries reported increased business activity, seven reported decreased activity, and three indicated unchanged activity compared to December. The industries reporting growth of business activity in January are: Utilities; Transportation & Warehousing; Professional, Scientific & Technical Services; Information; Other Services(d); Finance & Insurance; and Health Care & Social Assistance. The seven 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 January are: Arts, Entertainment & Recreation; Accommodation & Food Services; Management of Companies & Support Services; Educational Services; Public Administration; Retail Trade; and Construction. [TABLE OMITTED] THE LAST 12 MONTHS [TABLE OMITTED] New Orders ISM's Non-Manufacturing New Orders Index decreased to 55.4 percent in January from the seasonally adjusted 55.6 percent registered in December. This indicates continued expansion of new orders, but at a slower rate than in December. Comments from members include: "Slowing sales" and "New business should kick in shortly." Industries reporting growth of new orders in January are: Transportation & Warehousing; Information; Utilities; Finance & Insurance; Other Services(d); Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Wholesale Trade; and Health Care & Social Assistance. The industries reporting contraction of new orders in January are: Arts, Entertainment & Recreation; Management of Companies & Support Services; Accommodation & Food Services; Public Administration; Educational Services; Retail Trade; and Construction. [TABLE OMITTED] Employment Employment activity in the non-manufacturing sector increased at a slower rate in January compared to December. This was the 30th consecutive monthly increase in non-manufacturing employment. ISM's Non-Manufacturing Employment Index for January is 51.7 percent, a decrease of 1.5 percentage points from the seasonally adjusted 53.2 percent reported in December. Five industries reported increased employment, eight reported a decrease, and four indicated employment is unchanged from December. Comments from respondents include: "Layoffs due to slowing sales"; "Reduced demand"; and "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 unfilled positions." The industries reporting growth in employment in January are: Other Services(d); Transportation & Warehousing; Real Estate, Rental & Leasing; Finance & Insurance; and Wholesale Trade. The eight industries reporting a reduction in employment in January are: Arts, Entertainment & Recreation; Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Construction; Accommodation & Food Services; Information; Educational Services; and Professional, Scientific & Technical Services. [TABLE OMITTED] Supplier Deliveries In January, the delivery performance of suppliers to non-manufacturing organizations was slower than in December. The index registered 53.5 percent, 2.5 percentage points higher than in December, indicating slowing at a faster rate. A reading above 50 percent indicates slower deliveries. Comments from purchasing and supply executives concerning supplier deliveries in January include: "Supply chain pipe is clearing out"; "Winter storm caused some delays for 2-3 days"; and "Suppliers are having some issues with finished goods used in final assembly." The industries reporting slowing in supplier deliveries in January are: Utilities; Accommodation & Food Services; Other Services(d); Professional, Scientific & Technical Services; Information; Health Care & Social Assistance; Educational Services; and Wholesale Trade. The four industries reporting faster supplier deliveries in January are: Transportation & Warehousing; Management of Companies & Support Services; Finance & Insurance; and Public Administration. [TABLE OMITTED] Inventories ISM's Non-Manufacturing Inventories Index registered 47 percent in January, a decrease of 6.5 percentage points compared to December. This is the first time in 24 months that there has been contraction in non-manufacturing inventories. Of the total respondents in January, 32 percent indicated they do not have inventories or do not measure them. Comments from members include: "Planned inventory reductions" and "Inventory will be increased over the next few months to meet strong demand." The industries reporting increases in inventories in January are: Agriculture, Forestry, Fishing & Hunting; Other Services(d); Wholesale Trade; and Professional, Scientific & Technical Services. The industries reporting decreases in inventories in January are: Arts, Entertainment & Recreation; Public Administration; Real Estate, Rental & Leasing; Accommodation & Food Services; Management of Companies & Support Services; Construction; Utilities; Information; and Retail Trade. [TABLE OMITTED] Prices Prices paid by non-manufacturing organizations for purchased materials and services increased in January for the 44th consecutive month (following the recent seasonal adjustments). ISM's Non-Manufacturing Prices Index for January is 55.2 percent, 4.5 percentage points lower than December's seasonally adjusted index of 59.7 percent. In January, the percentage of respondents reporting higher prices increased by 3 percentage points to 23 percent as compared to December. The percentage indicating no change decreased from 71 percent in December to 62 percent in January. The percentage of respondents noting lower prices increased from 9 percent in December to 15 percent in January. The industries reporting an increase in prices paid in January are: Utilities; Other Services(d); Arts, Entertainment & Recreation; Finance & Insurance; Retail Trade; Health Care & Social Assistance; Professional, Scientific & Technical Services; Wholesale Trade; and Public Administration. The six industries reporting a decrease in prices in January are: Agriculture, Forestry, Fishing & Hunting; Construction; Information; Transportation & Warehousing; Real Estate, Rental & Leasing; and Educational Services. [TABLE OMITTED] Backlog of Orders ISM's Non-Manufacturing Backlog of Orders Index registered 49 percent in January, 1 percentage point higher than the 48 percent reported in December. This indicates that order backlogs are contracting for the second consecutive month. Of the total respondents in January, 44 percent indicated they do not measure backlog of orders. Purchasing and supply executives' comments include: "Suppliers catching up with orders"; "Fewer open orders"; and "Pushed a lot of orders out the door at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. ." The industries reporting an increase in order backlogs in January are: Agriculture, Forestry, Fishing & Hunting; Information; Other Services(d); Utilities; Construction; Retail Trade; and Finance & Insurance. The six industries reporting a decrease in order backlogs in January are: Arts, Entertainment & Recreation; Management of Companies & Support Services; Health Care & Social Assistance; Wholesale Trade; Public Administration; and Professional, Scientific & Technical Services. [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 19th consecutive month in January. The January index marks 41 of the past 42 months that the index has exhibited growth. The New Export Orders Index for January is 55 percent, compared to December's index of 61.5 percent. Of the total respondents in January, 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 January are: Information; Finance & Insurance; Agriculture, Forestry, Fishing & Hunting; Professional, Scientific & Technical Services; and Retail Trade. The five industries reporting a decrease in new export orders in January are: Public Administration; Educational Services; Management of Companies & Support Services; Other Services(d); and Wholesale Trade. [TABLE OMITTED] Imports In January, the ISM Non-Manufacturing Imports Index registered 52 percent, 10 percentage points lower than December's index of 62 percent, indicating that use of imports increased in January for the 12th consecutive month, but at a slower rate than in December. In January, 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 January are: Transportation & Warehousing; Information; Agriculture, Forestry, Fishing & Hunting; and Wholesale Trade. The five industries reporting a decrease in imports for the month of January are: Public Administration; Arts, Entertainment & Recreation; Management of Companies & Support Services; Accommodation & Food Services; 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 January registered 65.5 percent, 2 percentage points higher than the 63.5 percent reported in December. This indicates that non-manufacturing purchasing and supply executives feel more discomfort Discomfort may refer to pain, an unpleasant sensation, or to suffering, an unpleasant feeling or emotion. with current levels of inventory in January than they did during December. In January, 35 percent of respondents felt their inventories were too high, 4 percent indicated their inventories were too low, and 61 percent said that their inventories were about right. The industries reporting a feeling that their inventories are too high in January are: Accommodation & Food Services; Wholesale Trade; Other Services(d); Agriculture, Forestry, Fishing & Hunting; Construction; Transportation & Warehousing; Finance & Insurance; Professional, Scientific & Technical Services; Information; Retail Trade; and Public Administration. The one industry reporting that their inventories are too low is Utilities. [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 February February: see month. 2007 data will be released at 10:00 a.m. (ET) on Monday Monday: see week. , March 5, 2007. |
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