Thursday, September 4, 2008

Non-Manufacturing Index (NMI) indicates slight growth

The Institute for Supply Management released their August 2008 Non-Manufacturing ISM Report on Business today. The Non-Manufacturing Index (NMI) came in at 50.55%. 50% is the breakpoint for growth in the non-manufacturing sector. NMI had plunged to 44.6% in January 2008 but has been between 48%-52% ever since then.

NMI is made up of four components: business activity, employment, new orders, and supplier deliveries. Business activity was at 51.6% in August up from 49.6% in July; employment was at 45.4% down from 47.1%; new orders were at 49.7% up from 47.9%; and supplier deliveries were at 55.5% up from 53.5%.

Here is what some of the respondents were saying:

  • "Despite constant reminders of a tough economy ... business prospects are fairly strong." (Professional, Scientific & Technical Services)
  • "Fuel is easing, impacting many areas positively, but distributors are still under tremendous pressure due to the cost of diesel." (Accommodation & Food Services)
  • "Although we've had some relief recently, energy prices continue to influence buying and budgeting decisions." (Public Administration)
  • "New home construction continues to struggle under the weight of the current unsold housing inventory." (Wholesale Trade)
  • "If the drop in oil prices can be sustained, we should see a more profitable third quarter." (Utilities)



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