2010 Economic Calendar
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ISM Non-Mfg Index  
Released On 12/3/2010 10:00:00 AM For Nov, 2010
PriorConsensusConsensus RangeActual
Composite Index - Level54.3 55.0 54.0  to 58.0 55.0 

Highlights
The ISM's non-manufacturing index rose seven tenths to 55.0, the highest reading in six months and reflecting strong monthly gains for new orders and employment. The latter gain, taking the component to 52.7 for its strongest reading of the recovery, is notable given today's softness in the employment report. This report's employment index, until this month, had been very flat indicating that non-manufacturers had been reluctant to hire. Unadjusted gains for retail and corporate management led the month's employment gain.

Other readings in this report include a build in inventories, which follows two months of draws, and a second month of increase for backlog orders. Export orders were also strong. This report falls in line with the run of other data, this morning's employment report excluded, that are pointing to moderate, steady economic growth ahead.

Recent History Of This Indicator
The composite index from the ISM manufacturing survey jumped 2.5 points to 56.9. New orders were a standout, up nearly eight points to 58.9 to indicate strong month-to-month growth for the best reading since May. Employment rose more than one point to 57.7, indicating no let up in hiring.

Definition
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
 
[Chart]
ISM reinvented its headline series in 2008 by switching to a newly developed composite consisting of four equally weighted components – business activity, new orders, employment, and supplier deliveries. Previously, the headline series was the business activity index.
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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