DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report’s information reflects the entire United States, 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 June 2007.
TEMPE, Ariz.--(BUSINESS WIRE)--Business activity in the non-manufacturing sector increased at a faster rate in June 2007, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business®.
The report was issued today by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee; and senior vice president — supply management for Hilton Hotels Corporation. “Non-manufacturing business activity increased for the 51st consecutive month in June,” Nieves said. He added, “Business Activity and Employment increased at a faster rate in June than in May. The Business Activity Index registered 60.7 percent, the highest since April 2006 when it registered 61.1 percent. The New Orders index decreased to 56.9 percent, and the Prices Index decreased to 65.5 percent in June, both indicating growth at a slower rate than in May. Fourteen non-manufacturing industries reported increased activity in June. Members’ comments in June are mostly positive about business conditions. The overall indication in June is continued economic growth in the non-manufacturing sector at a faster pace than in May.”
TOP PERFORMING INDUSTRIES
The 14 industries reporting growth in June — listed in order — are: Construction; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Other Services(d); Accommodation & Food Services; Finance & Insurance; Educational Services; Public Administration; Utilities; Retail Trade; Management of Companies & Support Services; Information; Health Care & Social Assistance; and Wholesale Trade. There are no industries reporting decreased activity from May to June.
WHAT RESPONDENTS ARE SAYING …
* “Business remains steady and as predicted.” (Construction)
* “General business is on the rise with good rates holding through the Q2 period.” (Real Estate, Rental & Leasing)
* “Although business this month is better than last month, business in 2007 has been worse than business in 2006.” (Retail Trade)
* “In general business is stable.” (Agriculture, Forestry, Fishing & Hunting)
* “Fuel prices remain high with many vendors adding a fuel surcharge.” (Professional, Scientific & Technical Services)
Equipment & Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning & Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing 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® is based on data compiled from purchasing and supply executives nationwide. Membership of the Non-Manufacturing Business Survey Committee is diversified by NAICS, based on each industry’s contribution to gross domestic product (GDP). 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 have the properties of leading indicators 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® is published monthly by the Institute for Supply Management™, the largest supply management research and education organization in the United States. The Institute for Supply Management™, 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® 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® featuring the July 2007 data will be released at 10:00 a.m. (ET) on Friday, August 3, 2007.