Economic activity in the non-manufacturing sector grew in November for the 35th consecutive month, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business.
The NMI registered 54.7 percent in November, 0.5 percentage point higher than the 54.2 percent registered in October. This indicates continued growth at a slightly faster rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index registered 61.2 percent, which is 5.8 percentage points higher than the 55.4 percent reported in October, reflecting growth for the 40th consecutive month, and the New Orders Index increased by 3.3 percentage points to 58.1 percent, according to the report issued by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee.
According to the NMI™, 11 non-manufacturing industries reported growth in November. Respondents' comments are mixed; however, the majority of survey respondents reflect a cautious optimism about current economic conditions."
Industry Performance
The 11 non-manufacturing industries reporting growth in November — listed in order — are:
- Agriculture, Forestry, Fishing & Hunting
- Utilities
- Retail Trade
- Real Estate, Rental & Leasing
- Finance & Insurance
- Public Administration
- Construction
- Health Care & Social Assistance
- Professional, Scientific & Technical Services
- Information
- Other Services
The six industries reporting contraction in November — listed in order — are:
- Mining
- Educational Services
- Management of Companies & Support Services
- Transportation & Warehousing
- Accommodation & Food Services
- Wholesale Trade
What respondents are saying…
- "Cautiously optimistic is the best way to describe customer sentiment. Revenue continues to remain well below last year, but seems to have finally reached a point of stability. Price pressures are beginning to ease and customer traffic is once again picking up." (Arts, Entertainment & Recreation)
- "We have experienced an estimated 25 percent [increase] in new job orders, and in new hires for services." (Professional, Scientific & Technical Services)
- "Some companies seemed slower to make hiring decisions and/or place new positions on hold due to uncertainty in the economy and political climate." (Management of Companies & Support Services)
- "Worries about global slowdown persist; however, the housing market appears to have hit its lows and is beginning to climb. This is good news for governmental tax base projections." (Public Administration)
- "Hurricane Sandy has impacted our business activity tremendously. This emergency should not be misconstrued as a positive increase in business as usual; we merely facilitated emergency equipment and supplies to be delivered to the affected areas and the emergency responders." (Wholesale Trade)
- "Sales continue to lag, but there are signs of improvement." (Retail Trade)
Read the full November Non-Manufacturing ISM Report On Business.