April ISM Non-Mfg Index Holds Steady at 55.4

The Institute for Supply Management’s non-manufacturing business activity composite index was 55.4 in April, unchanged from March, on a seasonally adjusted basis, the group said yesterday.

Economists polled by Thomson Reuters had expected a 56.0 level.

An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.

The prices paid index rose to 64.7 from 62.9. The employment index decreased to 49.5 from 49.8.

The business activity-production index rose to 60.3 from 60.0; the new orders index was at 58.2, down from 62.3; backlog of orders dropped to 49.5 from 55.5; new export orders decreased to 57.0 from 57.5; inventories increased to 54.5 from 46.5; inventory sentiment gained to 53.5 from 52.5; the supplier deliveries index rose to 53.5 from 49.5; and imports climbed to 56.5 from 51.0.

“The [non-manufacturing index] registered 53% in February, 2.5 percentage points higher than the seasonally adjusted 50.5% registered in January, indicating growth in the non-manufacturing sector,” said Anthony Nieves, chairman of the ISM’s Non-Manufacturing Business Survey Committee.

“The non-manufacturing business activity index increased 0.3 percentage point to 60.3%, reflecting growth for the fifth consecutive month. The new orders index decreased 4.1 percentage points to 58.2%, and the employment index decreased 0.3 percentage point to 49.5%,” he said.

“The prices index increased 1.8 percentage points to 64.7% in April, indicating an increase in prices paid from March. According to the NMI, 14 non-manufacturing industries reported growth in April,” Nieves added. “Respondents’ comments are mostly positive about current business conditions; however, they vary by industry and ­company.”

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