2012 Economic Calendar
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ISM Non-Mfg Index  
Released On 5/3/2012 10:00:00 AM For Apr, 2012
PriorConsensusConsensus RangeActual
Composite Index - Level56.0 56.0 54.0  to 62.0 53.5 

Highlights
The bulk of the economy slowed sharply in April though the month's growth is still respectable. The ISM's non-manufacturing composite index slowed to 53.5 from a very strong 56.0 in March. New orders show their lowest monthly growth in six months as does business activity which in this report refers to output. The ISM's sample added jobs in April but at the slowest pace of the year in results that are not a positive indication for tomorrow's employment report.

Other readings are more positive including a solid monthly build in backlog orders, strength in export orders, and a steady rate of inventory accumulation. One special positive is sharp slowing in input prices which is a big plus for the bottom line of the sample.

Today's report is downbeat but the comparison with March is tough. Still, the nation's non-manufacturing sector, based on this report, is getting off to a slow start for the second quarter.

Consensus Outlook
The composite index from the ISM non-manufacturing survey in March fell 1.3 points to 56.0.
The composite was pulled back by slowing growth in new orders and business activity both of which however remain very healthy. The new orders index eased to 58.8 from 61.2 in February. Business activity posted at 58.9 versus 62.6 the month before.

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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