2012 Economic Calendar
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ISM Non-Mfg Index  
Released On 7/5/2012 10:00:00 AM For Jun, 2012
PriorConsensusConsensus RangeActual
Composite Index - Level53.7 53.0 51.5  to 54.0 52.1 

Highlights
Unlike the shocking declines in the ISM report on manufacturing, ISM's non-manufacturing report shows respectable rates of growth in June, growth however that is slower than in May. The composite headline index fell a bit more than expected, to 52.1 vs 53.7 in May but it's still safely above the 50 level under which monthly contraction is indicated. New orders is the most important component and it's at 53.3, a sustainably positive rate but still the lowest of the year. Export orders fell in the month which is no surprise given troubles in Europe and China, as did total backlog orders.

The business activity component slowed significantly to its slowest rate of monthly growth in more than 2-1/2 years. But one positive is expansion in the sample's employment which had stalled in the prior month. Price pressures show a second month of slight contraction.

The new orders reading in today's report isn't great but it is good news and points to continued growth for business activity and for the economy. The Dow is moving slightly lower following today's report.

Consensus Outlook
The composite index from the ISM non-manufacturing survey in May rose to 53.7 from 53.5 the month before. New orders rose 2 points to 55.5 to indicate accelerating monthly growth. The backlogs index was the same as in April, at 53.0 which was a solid rate for this reading. Business activity also picked up further in May.

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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