Thursday, September 6, 2012

ISM Report on Business - 9/6/12

ISM's Non-Manufacturing Report on Business for August 2012 was released today. NMI, the composite index for Non-Manufacturing, came in at 53.65%, up 1.08% from July. PMI, the composite index for Manufacturing, was released on Monday and was at 49.6%, down .2% from July. A reading below 50 indicates that the sector is contracting. A reading below 42.6% for PMI indicates that the overall economy is declining. I have averaged the Manufacturing and Non-manufacturing components to create a composite reading.

The Manufacturing Sector continues to weaken. 3 of the 10 indices in the Manufacturing Report are below 50, which is the same as last month. On the other hand, the Non-Manufacturing Sector remains strong. 9 out of the 10 indices in the Non-Manufacturing Report are above 50; last month, 6 were above 50.

Below is an interactive graph. You can interact with the graph by choosing what to display. The INDICATOR category contains all 10 areas surveyed as well as the PMI and NMI composites. The choices in the MA/NMA category allow you to view the Manufacturing report (MA), the Non-manufacturing report (NMA), and a composite of the two. The DATES category allows you to view specific periods of time.  If you left click on a category, the chart will update with only data for that item in that category. If you hold the CONTROL button down while left clicking, it will toggle that item on and off while leaving the other items in that category the same allowing you to add or subtract items. If you hold the SHIFT key down while left clicking, it will add all items in between where you clicked and the item you last clicked. You can clear all selections in a category by clicking the Filter Icon on the top right of each category (looks like a funnel with a X). You can also refresh the page to bring it back to its original state.


Here is what some of the Respondents to the surveys are saying:

• "Internal indicators and feedback from sales channels are indicating a slowdown in demand for capital equipment." (Machinery)
• "Business continues to be very solid, but there is now a slowing of incoming orders." (Fabricated Metal Products)
• "Incoming orders have slowed somewhat, but indications are that there will be a stronger fourth quarter." (Plastics & Rubber Products)
• "Business is slow right now. Companies seem to be holding onto their money." (Computer & Electronic Products)
• "We can sense, feel and see headwinds with customer orders, especially Europe related." (Apparel, Leather & Allied Products)
• "New orders and backlog remain flat." (Miscellaneous Manufacturing)
• "Auto industry slowing a bit in the second half [of the year]." (Transportation Equipment)
• "U.S. drought severely impacting raw materials prices." (Food, Beverage & Tobacco Products)
• "Lackluster demand continues in all regions of the world, and is supporting much lower raw materials prices in the second half of 2012." (Chemical Products)

• "Markets and customers we serve remain strong and have not caused any adverse impact to our business." (Management of Companies & Support Services)
• "Economy still stagnant. Small jobs keeping us going. Expect some improvement in capital spending in fourth quarter." (Professional, Scientific & Technical Services)
• "Small slowdown in tourism. Commodity prices on the rise." (Arts, Entertainment & Recreation)
• "Budgets are tighter; there are fewer new purchases being pursued that were not planned or budgeted." (Finance & Insurance)
• "Overall conditions continue to be unpredictable. Sales are inconsistent as customers reel to the news of the day, which creates havoc on the supply chain to respond."(Retail Trade)
• "Customers appear to be refocusing their resources on internal costs and efficiencies." (Wholesale Trade)

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