USA Non-Manufacturing Index (NMI) Up +1.7% in September (Chart) "Continued growth at faster rate"

♦♦♦

USA Non-Manufacturing Index (NMI) Grew for 9th Consecutive Month

USA Non-Manufacturing Index (NMI) Up +1.7% in September

Official Statement "(Tempe, Arizona) - Economic activity in the non-manufacturing sector grew in September for the ninth 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, C.P.M., CFPM, chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee; and senior vice president — supply management for Hilton Worldwide. "The NMI (Non-Manufacturing Index) registered 53.2 percent in September, 1.7 percentage points higher than the 51.5 percent registered in August, indicating continued growth in the non-manufacturing sector at a faster rate."

Short-Term Cycle History The current ISM NMI is up +5.0 and +10.4% from the recent low of 48.2 in August 2009. The NMI is down -2.2 and -4.0% from the recent high of 55.4 in March, April, and May 2010. The NMI is a percentage - not a total. More about the NMI below the chart.

Trend The NMI had been trending downwards after the 3-month peak and the current NMI is a bounce off the bottom. The NMI has been greater than 50, indicating USA non-manufacturing is expanding, since January 2010 - 9 consecutive months. The current NMI of 53.2 is above the 12-month moving average of 52.6.

Non-Manufacturing Index (Chart) Below is a chart of the latest 14 months of the Non-Manufacturing Index (NMI) of the Institute for Supply Management (ISM) from August 2009 through the latest month reported, September 2010. As can be seen, the NMI was lowest, on this chart, in August 2009, at 48.2, and then ascended significantly to March at 55.4. The NMI then stayed at this level through April and May before descending. However, the monthly declines in June and August still indicate USA manufacturing is expanding - just at a slower pace.



Commentary

This is encouraging data as the trend had been downwards and now there has been a bounce off the bottom in September. Also encouraging is the 9 consecutive months of expansion and now the rate of increase has increased. However, the related  ISM Manufacturing PMI is still in at least a short-term downwards trend, though still expanding, and is reviewed here (USA Manufacturing PMI Contracts in September -1.9% (Chart) *10 month low, growing at slower rate*).

About The NMI

The ISM describes the NMI, the USA non-manufacturing metric:

Level of the NMI A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting. An NMI in excess of 42 percent, over a period of time, generally indicates an expansion of the overall economy

NMI Components The NMI is a composite of five indexes: Business Activity (seasonally adjusted), New Orders (seasonally adjusted), Employment (seasonally adjusted) and Supplier Deliveries. 17 non-manufacturing industries are reported and represented in the NMI index: Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Retail Trade; Information; Other Services; Transportation & Warehousing; Public Administration; Mining; Health Care & Social Assistance; Educational Services; Wholesale Trade, Construction; Utilities; Accommodation & Food Services; and Finance & Insurance.

Non-Manufacturing Sector Plays a Significant Role in Economy The non-manufacturing sector currently makes up more than 80 percent of the gross domestic product (GDP). In addition to purchasing materials for production, manufacturing businesses also source for services from various non-manufacturing industries. Virtually every business is impacted by business activity in the non-manufacturing sector.

Related Articles and Links

Recent Posts by Financial Controls

JPMorgan Financial Performance Review (Charts) *Earnings to be reported this Wednesday, October 13* JPM

USA Total Consumer Credit Decreases in August (Charts) *7th consecutive monthly decline*

Bank Failure Friday: No FDIC Closures! *2010 YTD totals remains 129*
Federal Reserve: Pace of Economic Recovery Likely to be Modest in Near Term (Review)
Fed Beige Book: USA Economic Growth at Modest Pace (Review)
Fed Chair Bernanke: Pace of Economic Recovery Has Slowed Somewhat (Review)
Fed Chair Bernanke: Moderate Recovery, Outlook "Unusually Uncertain" (Review)
Recent Posts by Matrix Markets
S&P 500 Rally Resumes (Charts) *Bulls continue upwards 5 of last 6 weeks*
Recent Posts by Boom Doom Economy
USA Economic Weekly Leading Index at 19-Week High (Charts) Is the USA to encounter "cyclical instability"?
USA Unemployment Rate Continues at 9.6% in September (Charts) *95,000 jobs lost*
USA Weekly Unemployment Claims at 12-Week Low (Charts) *Total Claims 445,000*
Global Manufacturing PMI at 14-Month Low (Chart) "Production is likely to stop growing or even contract"
USA Manufacturing PMI Contracts in September -1.9% (Chart) *10 month low, growing at slower rate*
USA Q2 GDP Revised Slightly Upwards to +1.7% (Chart)Other Links
USA Monthly Consumer Confidence Index at 7 Month Low (Chart)
Global All-Industry Output Index Dips to 6 Month Low (Chart)
Global Services PMI at 6 Month Low (Chart) *Growing at Slower Rate in August*
USA Consumer Sentiment Drops to 13 Month Low (Chart)
USA Monthly Sales for Retail & Food Services Up +0.4% in August (Chart)
Other Links

Institute for Supply Management ISM
*Data courtesy of the Institute for Supply Management*

More Charts!

For Apple Financial Performance charts, go to Apple Digest

For Google Financial Performance charts, go to Google Investor

For Microsoft Financial Performance charts, to to Osprey Flyer

For Intel Financial Performance charts, go to Osprey Flyer

For JPMorgan Chase & Co. Financial Performance charts, go to Financial Controls
 
Follow Boom Doom Economy on Twitter!

♦♦♦