Thursday, January 05, 2017

ISM Non-Manufacturing Index (NMI®) for December 2016

Earlier today, the Institute for Supply Management (ISM®) released their Non-Manufacturing Index (NMI®) for December 2016:

Predicted: 56.8%
Actual: 57.2%

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The NMI® is a reliable barometer of the U.S. services sector; above 50% implies expansion, while a reading below 50% implies that the services sector contracted.

Service categories include: 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; Public Administration; and Other Services (services such as 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).

The previous month's non-manufacturing NMI reading was 57.2%.

Here's a sampling of comments from survey participants:

  •     "New business slowed a little bit, but we are still growing. The key headwinds are holiday season and capex [capital expenditures] tightening due to end of year budgets."
     (Construction)

  •     "Steady with optimism."
     (Finance and Insurance)

  •     "Business is the same and at the same volumes as last month."
     (Health Care and Social Assistance)

  •     "Very busy end to the 4th Qtr due to customers' year-end spending boost."
     (Mining)

  •     "Activity seems to be increasing as more potential client inquiries have been coming in."
     (Professional, Scientific and Technical Services)

  •     "Labor, especially construction labor and construction subcontractors, continue to be in short supply."
     (Public Administration)

  •     "Sales increasing due to [the] holidays."
     (Retail Trade)

  •     "Distribution of finished goods ahead of last year and forecasts in all channels. E-commerce [has the] strongest growth."
     (Transportation and Warehousing)
Click here to view the complete ISM report
at