2012 Economic Calendar
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ISM Non-Mfg Index  
Released On 2/3/2012 10:00:00 AM For Jan, 2012
PriorPrior RevisedConsensusConsensus RangeActual
Composite Index - Level52.6 53.0 53.3 52.0  to 54.0 56.8 

Highlights
A gigantic surge in employment and almost an equally dramatic surge in new orders headline a very strong ISM non-manufacturing report where the headline composite index jumped to 56.8, well beyond Econoday's consensus for 53.3 and a strong 3.6 points above December's upwardly revised 53.0.

New orders jumped nearly 5 points to a 59.4 level that indicates strong monthly growth and points to acceleration in general activity in the months ahead. But the employment index is the eye catcher, up 8 points to 57.4 for by far the strongest reading of the recovery. This index has been lagging improvement in employment data from the government -- but not any more.

Other readings include acceleration for business activity (production) and a slowing in the backlog draw. This report is echoing the message of this morning's jobs report -- that the economy is pivoting higher. This report should add to bullish sentiment through the session.

Consensus Outlook
The composite index from the ISM non-manufacturing survey in December edged only six tenths higher to 52.6, indicating only mild month-to-month growth in general business conditions. New orders, at 53.2, were no more than moderate though they were up two tenths from November.

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]
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
 
 

2012 Release Schedule
Released On: 1/52/33/54/45/36/57/58/39/610/311/512/5
Release For: DecJanFebMarAprMayJunJulAugSepOctNov
 


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