The Institute for Supply Management released the April 2008 Non-Manufacturing ISM Report on Business today. NMI, the Non-Manufacturing Index, was at 51.95% for April, up from 49.58% in March. The NMI is a composite index based on the diffusion indexes for four indicators seasonally adjusted with equal weights: Business Activity (decreased to 50.9% in April from 52.2% in March), New Orders (decreased to 50.1% from 50.2%), Employment (increased to 50.8% from 46.9%) and Supplier Deliveries (increased to 56.0% from 49.0%). April's NMI at 52 percent indicates growth in the non-manufacturing sector. A reading above 50 percent indicates the non-manufacturing sector economy is generally expanding; below 50 percent indicates the non-manufacturing sector is generally contracting. Economists had expected NMI to decline to 49.3.
Here is what some of the respondents are saying:
- "The financial services sector continues to deal with global economic conditions that are impacting not only revenue and earnings, but also buying and sourcing strategies." (Finance & Insurance)
- "There is a general push by many suppliers to increase prices (by as much as 5 percent to 10 percent) based upon the market pressures of fuels and energy."(Health Care & Social Assistance)
- "Business levels and interest remain quite high; however, notice some price sensitivity in recent weeks." (Professional, Scientific & Technical Services)
- "Paper market remains strong." (Information)
- "First quarter has continued to be positive..." (Wholesale Trade)
The NMI report is just the latest data suggesting that we are not feeling the effects of a deep recession.
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