Press Release: NMI(R) at 57.4%; November -2-

12/05/17 10:15 AM EST

The 12 industries reporting growth of new orders in November -- listed in order -- are: Transportation & Warehousing; Utilities; Wholesale Trade; Retail Trade; Real Estate, Rental & Leasing; Public Administration; Health Care & Social Assistance; Professional, Scientific & Technical Services; Accommodation & Food Services; Information; Management of Companies & Support Services; and Other Services. The two industries reporting a decrease in business activity in November are: Mining; and Educational Services.

 
New Orders   %Higher  %Same  %Lower  Index 
Nov 2017     30       57     13      58.7 
Oct 2017     35       52     13      62.8 
Sep 2017     40       49     11      63.0 
Aug 2017     29       55     16      57.1 
 

Employment

Employment activity in the non-manufacturing sector grew in November for the 45th consecutive month. ISM(R) 's Non-Manufacturing Employment Index registered 55.3 percent, which reflects a decrease of 2.2 percentage points when compared to the October reading of 57.5 percent. Eleven industries reported increased employment, and five industries reported decreased employment. Comments from respondents include: "We are adding staff to address rising volume and client service demands" and "Growth in business."

The 11 industries reporting an increase in employment in November -- listed in order -- are: Arts, Entertainment & Recreation; Real Estate, Rental & Leasing; Retail Trade; Educational Services; Other Services; Wholesale Trade; Finance & Insurance; Health Care & Social Assistance; Construction; Public Administration; and Management of Companies & Support Services. The five industries reporting a reduction in employment in November are: Agriculture, Forestry, Fishing & Hunting; Professional, Scientific & Technical Services; Mining; Accommodation & Food Services; and Information.

 
Employment   %Higher  %Same  %Lower  Index 
Nov 2017     23       61     16      55.3 
Oct 2017     24       65     11      57.5 
Sep 2017     22       66     12      56.8 
Aug 2017     25       60     15      56.2 
 

Supplier Deliveries

Supplier deliveries were slower in November for the 23rd consecutive month. The index registered 54 percent, which is 4 percentage points lower than the 58 percent that was registered in October. A reading above 50 percent indicates slower deliveries, while a reading below 50 percent indicates faster deliveries. Comments from respondents include: "The vendors and their sources are getting bogged down with the higher volume of orders" and "Truck driver shortages and rail car shortages."

The 10 industries reporting slower deliveries in November -- listed in order -- are: Mining; Agriculture, Forestry, Fishing & Hunting; Information; Management of Companies & Support Services; Professional, Scientific & Technical Services; Wholesale Trade; Health Care & Social Assistance; Construction; Retail Trade; and Finance & Insurance. The only industry reporting faster deliveries in November is Public Administration. Seven industries reported no change in supplier deliveries in November compared to October.

 
Supplier Deliveries   %Slower  %Same  %Faster  Index 
Nov 2017              11       86     3        54.0 
Oct 2017              17       82     1        58.0 
Sep 2017              19       78     3        58.0 
Aug 2017              7        87     6        50.5 
 

Inventories

ISM(R) 's Non-Manufacturing Inventories Index grew in November for the eighth consecutive month and registered 54.5 percent, 2 percentage points higher than the 52.5 percent that was reported in October. Of the total respondents in November, 32 percent indicated they do not have inventories or do not measure them. Comments from respondents include: "Replenishing inventory used during [the] hurricane" and "Preparing for [the] holiday season."

The 11 industries reporting an increase in inventories in November -- listed in order -- are: Agriculture, Forestry, Fishing & Hunting; Utilities; Retail Trade; Transportation & Warehousing; Information; Real Estate, Rental & Leasing; Wholesale Trade; Construction; Accommodation & Food Services; Public Administration; and Professional, Scientific & Technical Services. The three industries reporting decreases in inventories in November are: Health Care & Social Assistance; Other Services; and Finance & Insurance.

 
Inventories   %Higher  %Same  %Lower  Index 
Nov 2017      26       57     17      54.5 
Oct 2017      22       61     17      52.5 
Sep 2017      24       55     21      51.5 
Aug 2017      24       59     17      53.5 
 

Prices

Prices paid by non-manufacturing organizations for purchased materials and services increased in November for the sixth consecutive month. ISM(R) 's Non-Manufacturing Prices Index registered 60.7 percent, 2 percentage points lower than the 62.7 percent reported in October. Twenty-one percent of respondents reported higher prices, 73 percent indicated no change in prices paid, and 6 percent of respondents reported lower prices.

The 15 non-manufacturing industries reporting an increase in prices paid during the month of November -- listed in order -- are: Agriculture, Forestry, Fishing & Hunting; Mining; Transportation & Warehousing; Wholesale Trade; Utilities; Construction; Retail Trade; Public Administration; Management of Companies & Support Services; Other Services; Finance & Insurance; Accommodation & Food Services; Information; Professional, Scientific & Technical Services; and Health Care & Social Assistance. No industry reported a decrease in prices paid during the month of November.

 
Prices     %Higher  %Same  %Lower  Index 
Nov 2017   21       73     6       60.7 
Oct 2017   27       66     7       62.7 
Sep 2017   31       65     4       66.3 
Aug 2017   20       73     7       57.9 
 

NOTE: Commodities reported as up in price and down in price are listed in the commodities section of this report.

Backlog of Orders

ISM(R) 's Non-Manufacturing Backlog of Orders Index indicates that order backlogs grew in November. The index registered 51.5 percent, which is 2 percentage points lower than the 53.5 percent reported in October. Of the total respondents in November, 36 percent indicated they do not measure backlog of orders.

The seven industries reporting an increase in order backlogs in November -- listed in order -- are: Management of Companies & Support Services; Retail Trade; Finance & Insurance; Utilities; Public Administration; Professional, Scientific & Technical Services; and Wholesale Trade. The six industries reporting a decrease in order backlogs in November -- listed in order -- are: Mining; Information; Other Services; Health Care & Social Assistance; Construction; and Transportation & Warehousing.

 
Backlog of Orders   %Higher  %Same  %Lower  Index 
Nov 2017            16       71     13      51.5 
Oct 2017            18       71     11      53.5 
Sep 2017            22       68     10      56.0 
Aug 2017            20       67     13      53.5 
 

New Export Orders

Orders and requests for services and other non-manufacturing activities to be provided outside of the U.S. by domestically based personnel grew in November for the 10th consecutive month at a slower rate. The New Export Orders Index registered 57 percent, which is 3 percentage points lower than the 60 percent reported in October. Of the total respondents in November, 63 percent indicated they either do not perform, or do not separately measure, orders for work outside of the U.S.

The eight industries reporting an increase in new export orders in November -- listed in order -- are: Utilities; Retail Trade; Agriculture, Forestry, Fishing & Hunting; Transportation & Warehousing; Other Services; Construction; Health Care & Social Assistance; and Professional, Scientific & Technical Services. The only industry reporting a decrease in exports is Information. Seven industries reported no change in November compared to October.

 
New Export Orders   %Higher  %Same  %Lower  Index 
Nov 2017            20       74     6       57.0 
Oct 2017            28       64     8       60.0 
Sep 2017            18       76     6       56.0 
Aug 2017            16       78     6       55.0 
 

Imports

Imports grew in November for the sixth consecutive month. This month's reading at 52.5 percent is the 0.5 percentage point higher than the 52 percent that was reported in October. Fifty-two percent of respondents reported that they do not use, or do not track the use of, imported materials.

The six industries reporting an increase in imports for the month of November -- listed in order -- are: Agriculture, Forestry, Fishing & Hunting; Utilities; Other Services; Health Care & Social Assistance; Retail Trade; and Wholesale Trade. The only industry reporting a decrease in imports in the month of November is Accommodation & Food Services. Nine industries reported no change in November compared to October.

 
Imports    %Higher  %Same  %Lower  Index 
Nov 2017   10       85     5       52.5 
Oct 2017   13       78     9       52.0 
Sep 2017   9        86     5       52.0 
Aug 2017   11       79     10      50.5 
 

Inventory Sentiment

The ISM(R) Non-Manufacturing Inventory Sentiment Index in November registered 56 percent, which is 5 percentage points lower than the reading of 61 percent reported in October. This indicates that respondents believe their inventories are still too high at this time. In November, 22 percent of respondents said their inventories were too high, 10 percent of the respondents said their inventories were too low, and 68 percent said their inventories were about right.

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December 05, 2017 10:15 ET (15:15 GMT)

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