Business Activity Index at 55.6%; New Orders Index at 55.5%; Employment Index at 50.8%
Economic activity in the non-manufacturing sector grew in May for the 29th consecutive month, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business, issued by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee.
"The NMI registered 53.7% in May, 0.2%age point higher than the 53.5% registered in April. This indicates continued growth this month at a slightly faster rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index registered 55.6%, which is 1%age point higher than the 54.6% reported in April, reflecting growth for the 34th consecutive month. The New Orders Index increased by 2%age points to 55.5%, and the Employment Index decreased by 3.4%age points to 50.8%, indicating continued growth in employment at a slower rate. The Prices Index decreased 3.8%age points to 49.8%, indicating lower month-over-month prices for the first time since July 2009. According to the NMI, 13 non-manufacturing industries reported growth in May. The majority of the respondents' comments are positive and optimistic about business conditions and the direction of the economy."
The 13 non-manufacturing industries reporting growth in May – listed in order – are: Information; Transportation & Warehousing; Accommodation & Food Services; Management of Companies & Support Services; Educational Services; Wholesale Trade; Construction; Retail Trade; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Finance & Insurance; Utilities; and Public Administration. The three industries reporting contraction in May are: Arts, Entertainment & Recreation; Health Care & Social Assistance; and Mining.
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