2011 Economic Calendar
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ISM Non-Mfg Index  
Released On 9/6/2011 10:00:00 AM For Aug, 2011
PriorConsensusConsensus RangeActual
Composite Index - Level52.7 51.0 49.7  to 56.6 53.3 

Steady growth is the message from the Institute For Supply Management whose non-manufacturing composite edged six tenths higher to 53.3, a very respectable rate given August's heavy run of negative economic news. The reading is above 50 to indicate monthly growth and, because its slightly higher than July, it also indicates a slight acceleration in growth. New orders show slight but welcome monthly acceleration to 52.8 for a 1.1 point gain from July. The drawdown in backlog orders slowed, which is a positive, while export orders picked up nicely in the month. Though orders have been soft in recent months, business activity, that is production, still remains brisk at 55.6. The ISM's sample, which includes firms in the service sector together with construction and mining, added to their workforces in the month though only slightly and at a slightly lower rate than in July. Supplier deliveries, which slowed in what is a sign of demand, were a major positive for the composite. Stocks are trimming opening losses in reaction to this report.

Consensus Outlook
The composite index from the ISM non-manufacturing survey for July edged down 0.6 points to 52.7. Unfortunately weakness was led by the new orders index, falling nearly 1.9 points to 51.7 and barely staying above the breakeven level of 50. This index was in the 60s as recently as March. Backlog orders shrank at a faster pace, down 4-1/2 points in the month to 44.0. Also slowing was the survey's employment index at 52.5 versus 54.1 in June. On the upside, business activity, a component that is akin to a production index on the manufacturing side, rose more than 2-1/2 points to 56.1.

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

2011 Release Schedule
Released On: 1/52/33/34/55/46/37/68/39/610/511/312/5
Release For: DecJanFebMarAprMayJunJulAugSepOctNov

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