2010 Economic Calendar
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ISM Non-Mfg Index  
Released On 8/4/2010 10:00:00 AM For Jul, 2010
PriorConsensusConsensus RangeActual
Composite Index - Level53.8 53.0 52.8  to 54.0 54.3 

Just when the run of economic data looks bad a good report comes out. The ISM's non-manufacturing index rose to 54.3 in July vs. 53.8 in June. New orders rose nearly 2-1/2 points to 56.7 while employment climbed more than one point to 50.9 for its best reading of the recovery.

Other details are steady to mixed. Business activity, akin to a production index, edges lower to a still very strong 57.4. Export orders are strong with a four point jump to 52.0, though exports are not a major business for non-manufacturers. Backlogs rose but at a slower rate than in June as did inventories.

This report is a big positive given the prospect from prior reports for gradual slowing. The double dip is still on hold.

Consensus Outlook
The composite index from the ISM non-manufacturing slipped back 1.6 points to 53.8 in June for its lowest reading since February. Nearly all details showed deceleration since May. New orders fell nearly three points to 54.4 for its lowest reading of the year and this suggests a modestly positive number for July. But the July reading for the Chicago PMI - which includes nonmanufacturing as well as manufacturing - showed an unexpected boost for July. The ISM non-manufacturing index could follow the July Chicago reading back up.

The Institute For Supply Management surveys more than 375 firms from numerous sectors across the United States for its non-manufacturing index. This index covers services, construction, mining, agriculture, forestry, and fishing and hunting. The non-manufacturing composite index has four equally weighted components: business activity (closely related to a production index), new orders, employment, and supplier deliveries (also known as vendor performance). The first three components are seasonally adjusted but the supplier deliveries index does not have statistically significant seasonality and is not adjusted. For the composite index, a reading above 50 percent indicates that the non-manufacturing economy is generally expanding; below 50 percent indicates that it is generally declining. The supplier deliveries component index requires extra explanation. A reading above 50 percent indicates slower deliveries and below 50 percent indicates faster deliveries. However, slower deliveries are a plus for the economy -- indicating demand is up and vendors are not able to fill orders as quickly.  Why Investors Care
The ISM non-manufacturing survey does not compile a composite index like its manufacturing cousin. The business activity index, which is actually akin to the production index in the manufacturing survey, is widely followed as the key figure from this survey.
Data Source: Haver Analytics

2010 Release Schedule
Released On: 1/62/33/34/55/56/37/68/49/310/511/312/3
Release For: DecJanFebMarAprMayJunJulAugSepOctNov

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