NEW YORK - The Institute for Supply Management's non-manufacturing business activity composite index was 55.4 in April, unchanged from 55.4 in March, on a seasonally adjusted basis, the group said today.
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, closely watched for signs of inflation, 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 NMI (Non-Manufacturing Index) registered 53 percent in February, 2.5 percentage points higher than the seasonally adjusted 50.5 percent registered in January, indicating growth in the non-manufacturing sector” said Anthony Nieves, chair of the ISM's Non-Manufacturing Business Survey Committee. “The Non-Manufacturing Business Activity Index increased 0.3 percentage point to 60.3 percent, reflecting growth for the fifth consecutive month. The New Orders Index decreased 4.1 percentage points to 58.2 percent, and the Employment Index decreased 0.3 percentage point to 49.5 percent. The Prices Index increased 1.8 percentage points to 64.7 percent in April, indicating an increase in prices paid from March. According to the NMI, 14 non-manufacturing industries reported growth in April. Respondents’ comments are mostly positive about current business conditions; however, they vary by industry and company.”
Members' general comments on business in the month included:
“Best production/service levels in 24 months.” (Wholesale Trade)
“Selling prices for our products continue to decline.” (Mining)
“The market and other financial indicators point to an improving economy; however, that is being overshadowed by skepticism and lack of confidence. Capital spending is being constrained by concern over the economic view in a post-stimulus era, with double-digit interest rates and mounting debt.” (Educational Services)
“Market shows slight signs of tightening.” (Information)
“Business conditions are improving.” (Management of Companies & Support Services)
“There are signs of improvement which are leading us to be optimistic; however, as prices escalate the stability of the recovery is at risk.” (Retail Trade)
