EmailEconomic
Last Update: 05-Jun-13 10:26 ET
ISM Services
Highlights
- While the manufacturing industry slipped into a contraction in May, the services sector managed its 41st consecutive monthly expansion. The ISM Non-manufacturing Index improved slightly in May, increasing from 53.1 in April to 53.7. The Briefing.com consensus expected the index to increase to 53.5.
Key Factors
- Business activity jumped 1.5 points to 56.5 in May from 55.0 in April. The increase in activity most likely came from strong gains in new orders, which increased to 56.0 from 54.5. Unfilled orders growth was flat as the index remained at 51.5.
- Even though production showed significant gains, employment growth softened in May. The Employment Index fell to 50.1 in May from 52.0 in April, barely remaining in an expansion mode. This data point coupled with the weaker-than-expected ADP report could be a harbinger of a disappointing May nonfarm payrolls number.
Big Picture
- The market generally doesn't pay much attention to the services index because the services sector is less cyclical than the manufacturing sector.
| Category | MAY | APR | MAR | FEB | JAN |
|---|---|---|---|---|---|
| Non-Manufacturing ISM index | 53.7 | 53.1 | 54.4 | 56.0 | 55.2 |
| Business Activity | 56.5 | 55.0 | 56.5 | 56.9 | 56.4 |
| New Orders | 56.0 | 54.5 | 54.6 | 58.2 | 54.4 |
| Employment | 50.1 | 52.0 | 53.3 | 57.2 | 57.3 |
| Deliveries (nsa) | 52.0 | 51.0 | 53.0 | 51.5 | 52.5 |
| Inventories (nsa) | 51.5 | 56.0 | 51.5 | 54.0 | 47.0 |
| Exports (nsa) | 50.0 | 53.5 | 56.5 | 60.5 | 55.5 |
| Imports (nsa) | 49.5 | 58.5 | 57.5 | 52.5 | 51.0 |
| Prices Paid | 51.1 | 51.2 | 55.9 | 61.7 | 58.0 |
