ISM-NY News

April 2014 Non-Manufacturing ISM Report On Business®
5/5/2014

(Tempe, Arizona) — Economic activity in the non-manufacturing sector grew in April for the 51st consecutive month, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM® Report On Business®.

The report was issued today by Anthony Nieves, CPSM, C.P.M., CFPM, chair of the Institute for Supply Management® (ISM®) Non-Manufacturing Business Survey Committee. "The NMI® registered 55.2 percent in April, 2.1 percentage points higher than March's reading of 53.1 percent. The Non-Manufacturing Business Activity Index increased substantially to 60.9 percent, which is 7.5 percentage points higher than the March reading of 53.4 percent, reflecting growth for the 57th consecutive month at a much faster rate. The New Orders Index registered 58.2 percent, 4.8 percentage points higher than the reading of 53.4 percent registered in March. The Employment Index decreased 2.3 percentage points to 51.3 percent from the March reading of 53.6 percent and indicates growth for the second consecutive month, but at a slower rate. The Prices Index increased 2.5 percentage points from the March reading of 58.3 percent to 60.8 percent, indicating prices increased at a faster rate in April when compared to March. According to the NMI®, 14 non-manufacturing industries reported growth in April. The majority of survey respondents' comments indicate that both business conditions and the economy are improving."

INDUSTRY PERFORMANCE

The 14 non-manufacturing industries reporting growth in April — listed in order — are: Arts, Entertainment & Recreation; Wholesale Trade; Agriculture, Forestry, Fishing & Hunting; Retail Trade; Construction; Public Administration; Accommodation & Food Services; Educational Services; Transportation & Warehousing; Finance & Insurance; Management of Companies & Support Services; Information; Real Estate, Rental & Leasing; and Utilities. The four industries reporting contraction in April are: Mining; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Other Services.

WHAT RESPONDENTS ARE SAYING ...
  • "Our outlook for 2014 remains on target. No significant changes with our customer base." (Management of Companies & Support Services)
  • "General business conditions are improving." (Information)
  • "Market conditions are generally steady; internal pressure to reduce overall cost of goods and services." (Finance & Insurance)
  • "Business levels have been stable. Our company made an acquisition this past month, so we are planning for revenue growth in the second half of 2014." (Real Estate, Rental & Leasing)
  • "Traffic and sales are up due to break in weather." (Accommodation & Food Services)
  • "Overall spending continues to trend upward, particularly for large dollar items, like vehicles and aircraft, as the state replenishes the fleet that was depleted during 2009—2013." (Public Administration)
  • "We are experiencing a pickup in sales, which has brought back a little optimism that we may have seen the floor, and things could be turning up. We are making investments to take advantage of the upswing to leverage as many sales options as possible." (Retail Trade)

The full text version of the Non-Manufacturing ISM Report On Business® is posted on ISM's Web site at www.ism.ws on the third business day of every month after 10:10 a.m. (ET).

April 2014 data will be released at 10:00 a.m. (ET) on Monday, May 5, 2014.

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