10-4-17 10:15 AM EDT | Email Article

The 15 industries reporting growth of new orders in September -- listed in order -- are: Retail Trade; Utilities; Information; Other Services; Transportation & Warehousing; Professional, Scientific & Technical Services; Management of Companies & Support Services; Finance & Insurance; Educational Services; Public Administration; Construction; Real Estate, Rental & Leasing; Wholesale Trade; Accommodation & Food Services; and Health Care & Social Assistance. The only industry reporting a decrease in business activity in September is Mining.

 
New Orders   %Higher  %Same  %Lower  Index 
Sep 2017     40       49     11      63.0 
Aug 2017     29       55     16      57.1 
Jul 2017     27       61     12      55.1 
Jun 2017     33       58     9       60.5 
 

Employment

Employment activity in the non-manufacturing sector grew in September for the 43rd consecutive month. ISM(R) 's Non-Manufacturing Employment Index registered 56.8 percent, which reflects an increase of 0.6 percentage point when compared to the August reading of 56.2 percent. Ten industries reported increased employment, and five industries reported decreased employment. Comments from respondents include: "Adding staff to address workload" and "Capacity and need."

The 10 industries reporting an increase in employment in September -- listed in order -- are: Real Estate, Rental & Leasing; Other Services; Wholesale Trade; Retail Trade; Finance & Insurance; Management of Companies & Support Services; Mining; Transportation & Warehousing; Health Care & Social Assistance; and Construction. The five industries reporting a reduction in employment in September are: Arts, Entertainment & Recreation; Utilities; Public Administration; Professional, Scientific & Technical Services; and Information.

 
Employment   %Higher  %Same  %Lower  Index 
Sep 2017     22       66     12      56.8 
Aug 2017     25       60     15      56.2 
Jul 2017     26       60     14      53.6 
Jun 2017     32       56     12      55.8 
 

Supplier Deliveries

Supplier deliveries were slower in September for the 21st consecutive month. The index registered 58 percent, which is 7.5 percentage points higher than the 50.5 percent that was registered in August. A reading above 50 percent indicates slower deliveries, while a reading below 50 percent indicates faster deliveries. Comments from respondents include: "Weather conditions impacted the supplier deliveries" and "Suppliers not responding to increased demand."

The 13 industries reporting slower deliveries in September -- listed in order -- are: Management of Companies & Support Services; Transportation & Warehousing; Wholesale Trade; Agriculture, Forestry, Fishing & Hunting; Educational Services; Professional, Scientific & Technical Services; Construction; Mining; Retail Trade; Public Administration; Information; Other Services; and Health Care & Social Assistance. The two industries reporting faster deliveries in September are: Accommodation & Food Services; and Finance & Insurance.

 
Supplier Deliveries   %Slower  %Same  %Faster  Index 
Sep 2017              19       78     3        58.0 
Aug 2017              7        87     6        50.5 
Jul 2017              7        88     5        51.0 
Jun 2017              8        89     3        52.5 
 

Inventories

ISM(R) 's Non-Manufacturing Inventories Index grew in September for the sixth consecutive month and registered 51.5 percent, 2 percentage points lower than the 53.5 percent that was reported in August. Of the total respondents in September, 31 percent indicated they do not have inventories or do not measure them. Comments from respondents include: "Consumed some inventory due to hurricane recovery" and "Unexpected higher volume of activity."

The six industries reporting an increase in inventories in September -- listed in order -- are: Other Services; Utilities; Professional, Scientific & Technical Services; Construction; Wholesale Trade; and Health Care & Social Assistance. The five industries reporting decreases in inventories in September are: Arts, Entertainment & Recreation; Management of Companies & Support Services; Public Administration; Retail Trade; and Information. Six industries reported no change in inventories in September compared to August.

 
Inventories   %Higher  %Same  %Lower  Index 
Sep 2017      24       55     21      51.5 
Aug 2017      24       59     17      53.5 
Jul 2017      26       61     13      56.5 
Jun 2017      29       57     14      57.5 
 

Prices

Prices paid by non-manufacturing organizations for purchased materials and services increased substantially in September and also increased for the fourth consecutive month. ISM(R) 's Non-Manufacturing Prices Index registered 66.3 percent, 8.4 percentage points higher than the 57.9 percent reported in August. Thirty-one percent of respondents reported higher prices, 65 percent indicated no change in prices paid, and 4 percent of respondents reported lower prices.

The 16 non-manufacturing industries reporting an increase in prices paid during the month of September -- listed in order -- are: Management of Companies & Support Services; Wholesale Trade; Construction; Public Administration; Agriculture, Forestry, Fishing & Hunting; Mining; Arts, Entertainment & Recreation; Finance & Insurance; Utilities; Transportation & Warehousing; Educational Services; Professional, Scientific & Technical Services; Other Services; Health Care & Social Assistance; Information; and Retail Trade. The only industry reporting a decrease in prices paid during the month of September is Accommodation & Food Services.

 
Prices     %Higher  %Same  %Lower  Index 
Sep 2017   31       65     4       66.3 
Aug 2017   20       73     7       57.9 
Jul 2017   19       77     4       55.7 
Jun 2017   19       72     9       52.1 
 

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 September. The index registered 56 percent, which is 2.5 percentage points higher than the 53.5 percent reported in August. Of the total respondents in September, 30 percent indicated they do not measure backlog of orders.

The eight industries reporting an increase in order backlogs in September -- listed in order -- are: Management of Companies & Support Services; Retail Trade; Health Care & Social Assistance; Information; Utilities; Finance & Insurance; Public Administration; and Wholesale Trade. The three industries reporting a decrease in order backlogs in September are: Other Services; Transportation & Warehousing; and Construction. Six industries reported no change in backlog in September compared to August.

 
Backlog of Orders   %Higher  %Same  %Lower  Index 
Sep 2017            22       68     10      56.0 
Aug 2017            20       67     13      53.5 
Jul 2017            15       74     11      52.0 
Jun 2017            15       75     10      52.5 
 

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 September for the eighth consecutive month at a faster rate. The New Export Orders Index registered 56 percent, which is 1 percentage point higher than the 55 percent reported in August. Of the total respondents in September, 65 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 September -- listed in order -- are: Retail Trade; Public Administration; Information; Other Services; Construction; Accommodation & Food Services; Finance & Insurance; and Professional, Scientific & Technical Services. The two industries reporting a decrease in export orders in September are: Health Care & Social Assistance; and Transportation & Warehousing. Six industries reported no change in exports in September compared to August.

 
New Export Orders   %Higher  %Same  %Lower  Index 
Sep 2017            18       76     6       56.0 
Aug 2017            16       78     6       55.0 
Jul 2017            15       76     9       53.0 
Jun 2017            13       84     3       55.0 
 

Imports

Imports grew in September for the fourth consecutive month. This month's reading at 52 percent is 1.5 percentage points higher than the reading of 50.5 percent reported in August. Fifty-three percent of respondents reported that they do not use, or do not track the use of, imported materials.

The four industries reporting an increase in imports for the month of September are: Retail Trade; Other Services; Information; and Construction. The three industries reporting a decrease in imports in the month of September are: Health Care & Social Assistance; Accommodation & Food Services; and Professional, Scientific & Technical Services. Ten industries reported no change in imports in September compared to August.

 
Imports    %Higher  %Same  %Lower  Index 
Sep 2017   9        86     5       52.0 
Aug 2017   11       79     10      50.5 
Jul 2017   9        85     6       51.5 
Jun 2017   9        84     7       51.0 
 

Inventory Sentiment

The ISM(R) Non-Manufacturing Inventory Sentiment Index in September registered 58.5 percent, which is 2.5 percentage points lower than the reading of 61 percent reported in August. This indicates that respondents believe their inventories are still too high at this time. In September, 24 percent of respondents said their inventories were too high, 7 percent of the respondents said their inventories were too low, and 69 percent said their inventories were about right.

(MORE TO FOLLOW) Dow Jones Newswires

October 04, 2017 10:15 ET (14:15 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
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