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Economic Data (USA)

Wednesday, March 04, 2020

ISM Non-Manufacturing Index (NMI®) for February 2020

Earlier today, the Institute for Supply Management (ISM®) released their Non-Manufacturing Index (NMI®) for February 2020:

Predicted: 55.0%
  • Actual: 57.3%  (+1.8 points month-on-month change)


Previous month: 55.5%


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).


From today' report:

"...Economic activity in the non-manufacturing sector grew in February for the 121st consecutive month, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM® Report On Business®..."


Here's a sampling of comments made by survey participants:

        “[The] coronavirus has increased lead times for the critical items.”

  •     “[First-quarter numbers] are slightly behind projections, but still positive.”
     (Finance & Insurance)

  •     “Because of the coronavirus, we are looking at major back-orders in masks, gloves, and PPE (personal protection equipment). A lot of the masks are manufactured in China, so not only are we facing a shortage because of the virus, there is a drastic shortage because the masks are manufactured where the virus originated.”
     (Health Care & Social Assistance)

  •     “Business is rapidly improving.”
     (Management of Companies & Support Services)

  •     “The business outlook remains positive, but foggy due to the Chinese coronavirus outbreak. The mining industry is well dependent on Chinese consumption. On the other side, it is difficult to [make] sourcing decisions, since it is not clear how long China will need to return to normal production capacity, and if it is worth it to pay more from other countries.”

  •     “The outlook appears positive, as our order book is nearing full capacity for the first half of 2020.”
     (Professional, Scientific & Technical Services)

  •     “Construction activity appears to be getting off to a good start for 2020.”
     (Real Estate, Rental & Leasing)

  •     “A post-holiday slow period for retail. Business is strong overall; however, volume and inventories are lower due to the season. Pricing is still in check, with specialty labor the primary price risk.”
     (Retail Trade)

  •     “A shortage of workers at several levels is impacting the quality of employees we are looking to hire for capital projects we need to start.”
     (Transportation & Warehousing)


ISM Non-Manufacturing Index (NMI®) - 12 Month History  February 2020 Update

ISM Non-Manufacturing Index (NMI®) - 12 Month History

February 2020 Update


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