The non-manufacturing ISM surveys nearly 400 firms from 60 sectors across the United States, including agriculture, mining, construction, transportation, communications, wholesale trade and retail trade. Beginning with the January 2008 report, a new composite index was made public and is now the headline number. It is considered an indicator of the overall economic conditions for the non-manufacturing sector and consists of four equally weighted indexes: business activity, new orders, employment, and supplier deliveries. Why Investors Care
| Released on 4/3/08 For Mar 2008 | ||||||||||||
| ||||||||||||
Highlights
Steady readings in the March ISM report on the non-manufacturing sector lower the risk that the economy has tipped into recession. The ISM's composite index was little changed, up 3 tenths from February at 49.6 -- a nearly dead even 50 reading indicating an even split between those purchasers reporting contracting conditions and those reporting expanding conditions. New orders show a similar result, up 6 tenths to 50.2 and boosted as they were in Tuesday's ISM report on the manufacturing sector by strength in export orders, in this case spiking 8-1/2 point to 55.0. The gain on the new order side helps to offset a 2 point dip in backlog orders to 47.5.
A negative in the report, as it was for manufacturing, is costs where prices paid are rising with the index in this report up nearly 3 points to 70.8. But the reading at least isn't as high as the plus 80 reading seen for manufacturing. Supplier deliveries are not showing any stress, a big plus for the inflation outlook reflecting slower demand and indicating a lack of shortages. Inventory data are stable.
The dollar firmed while Treasury yields rose in immediate reaction to the results which are likely to give a lift to the stock market through the session.
The business activity index from the ISM non-manufacturing survey surprisingly showed some moderate improvement in February, reaching back up into positive territory at 50.8 from January's 41.9. New orders posted a similar gain but just falling short of breakeven at 49.5, well up from 43.5 in January. Costs remained elevated with prices paid down a slight 3 points to 67.9.
Business activity index Consensus Forecast for March 08: 49.0
Range: 47.5 to 51.1
![[Chart]](chart.gif)
|
Beginning with the January 2008 report, a new composite index was made public and is now the headline number. It is considered an indicator of the overall economic conditions for the non-manufacturing sector and consists of four equally weighted indexes: business activity, new orders, employment, and supplier deliveries. |
| 2008 Release Schedule | ||||||||||||||||||||||||||
|
powered by
![[Econoday]](../../../../../../../../../images/logo.gif){kind=logo}