2010 Economic Calendar
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ISM Non-Mfg Index  
Released On 9/3/2010 10:00:00 AM For Aug, 2010
PriorConsensusConsensus RangeActual
Composite Index - Level54.3 53.0 52.0  to 54.5 51.5 

A new optimism after today's jobs report -- not so fast. The ISM non-manufacturing report shows broad and deeper-than-expected slowing. New orders at 52.4 are down more than four points in August for the slowest rate of month-to-month growth so far this year. Employment, which in this report includes government workers, is signaling contraction, at 48.2 for a nearly three point decline for the worst reading since January. The composite headline index at 51.5 is down exactly three points for what is also the worst reading since January.

Backlog orders are basically flat, export orders are down, deliveries are showing less delays, and general business activity is slower. Imports did rise as did raw material prices.

Immediate reaction to the report is muted in part because of a rumor for a weak report that hit the markets just before the 10:00 ET release. Yet this report isn't likely to help the markets through the remainder of the pre-holiday session. Just barely holding its own, the economy is in a touchy spot.

Consensus Outlook
The composite index from the ISM non-manufacturing survey in July improved to 54.3 from 53.8 month before. Yet business activity, akin to a production index, edged lower to a still very strong 57.4 – well above breakeven of 50. But we could see a higher composite in August as the new orders index rose nearly 2-1/2 points to 56.7.

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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