Friday, September 03, 2010

ISM Non-Manufacturing Index declines in August

by Bill McBride on 9/03/2010 11:23:00 AM

Earlier employment posts:

  • August Employment Report: 60K Jobs ex-Census, 9.6% Unemployment Rate
  • Employment-Population Ratio, Part Time Workers, Unemployed over 26 Weeks

    The August ISM Non-manufacturing index was at 51.5%, down from 54.3% in July - and below expectations of 53.0%. The employment index showed contraction in August at 48.2%. Note: Above 50 indicates expansion, below 50 contraction.

    ISM Non-Manufacturing Index Click on graph for larger image in new window.

    This graph shows the ISM non-manufacturing index (started in January 2008) and the ISM non-manufacturing employment diffusion index.

    The overall ISM index, and the employment index, are both at the lowest level since January.

    From the Institute for Supply Management: August 2010 Non-Manufacturing ISM Report On Business®
    Economic activity in the non-manufacturing sector grew in August for the eighth consecutive month, 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 Worldwide. "The NMI (Non-Manufacturing Index) registered 51.5 percent in August, 2.8 percentage points lower than the 54.3 percent registered in July, indicating continued growth in the non-manufacturing sector but at a slower rate. The Non-Manufacturing Business Activity Index decreased 3 percentage points to 54.4 percent, reflecting growth for the ninth consecutive month, but at a slower rate than in July. The New Orders Index decreased 4.3 percentage points to 52.4 percent, and the Employment Index decreased 2.7 percentage points to 48.2 percent, reflecting contraction after one month of growth.
    emphasis added