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Home Supply Management News & Reports ISM Reports ISM Report On Business®
Services April 2024 Services ISM® Report On Business®
SERVICES PMI® AT 49.4%
APRIL 2024 SERVICES ISM® REPORT ON BUSINESS®
BUSINESS ACTIVITY INDEX AT 50.9%
NEW ORDERS INDEX AT 52.2%
EMPLOYMENT INDEX AT 45.9%
SUPPLIER DELIVERIES INDEX AT 48.5%
(Tempe, Arizona) — Economic activity in the services sector contracted in April
for the first time since December 2022, ending a period of 15 consecutive months
of growth, say the nation's purchasing and supply executives in the latest
Services ISM® Report On Business®. The Services PMI® registered 49.4 percent; it
indicated sector expansion in 45 of the previous 47 months.
The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair
of the Institute for Supply Management® (ISM®) Services Business Survey
Committee: “In April, the Services PMI® registered 49.4 percent, 2 percentage
points lower than March’s reading of 51.4 percent. The composite index indicated
contraction in April after 15 consecutive months of growth since a reading of 49
percent in December 2022, the first contraction since May 2020 (45.4 percent).
The Business Activity Index registered 50.9 percent in April, which is 6.5
percentage points lower than the 57.4 percent recorded in March. The New Orders
Index expanded in April for the 16th consecutive month after contracting in
December 2022 for the first time since May 2020; the figure of 52.2 percent is
2.2 percentage points lower than the March reading of 54.4 percent. The
Employment Index contracted for the fourth time in five months with a reading of
45.9 percent, a 2.6-percentage point decrease compared to the 48.5 percent
recorded in March.
“The Supplier Deliveries Index registered 48.5 percent, 3.1 percentage points
higher than the 45.4 percent recorded in March. The index contracted for the
third straight month — indicating that supplier delivery performance was faster
— after one month in expansion (or ‘slower’) territory in January. (Supplier
Deliveries is the only ISM® Report On Business® index that is inversed; a
reading of above 50 percent indicates slower deliveries, which is typical as the
economy improves and customer demand increases.)
“The Prices Index registered 59.2 percent in April, a 5.8-percentage point
increase from March’s reading of 53.4 percent. The Inventories Index grew in
April after four previous months of contraction, registering 53.7 percent, an
increase of 8.1 percentage points from March’s figure of 45.6 percent. The
Inventory Sentiment Index (62.9 percent, up 7.2 percentage points from March’s
reading of 55.7 percent) expanded for the 12th consecutive month. The Backlog of
Orders Index grew in April after contracting in March, registering 51.1 percent,
a 6.3-percentage point increase compared to the March reading of 44.8 percent.
“Twelve industries reported growth in April. The Services PMI® — through 15
consecutive months of growth after a single month of contraction in December
2022 and a prior 30-month period of expansion — had been indicating sustained
growth for the sector. But the reading of under 50 percent in April reflects
month-over-month contraction.”
Nieves continues, “The decline in the composite index in April is a result of
lower business activity, slower new orders growth, faster supplier deliveries
and the continued contraction in employment. Survey respondents indicated that
overall business is generally slowing, with rates varying by company and
industry. Employment challenges continue to be primarily due to difficulties in
backfilling positions and/or controlling labor expenses. The majority of
respondents indicate that inflation and geopolitical issues remain concerns.”
INDUSTRY PERFORMANCE
The 12 services industries reporting growth in April — listed in order — are:
Accommodation & Food Services; Construction; Agriculture, Forestry, Fishing &
Hunting; Utilities; Mining; Management of Companies & Support Services;
Educational Services; Retail Trade; Finance & Insurance; Health Care & Social
Assistance; Public Administration; and Wholesale Trade. The six industries
reporting a decrease in the month of April — listed in order — are: Other
Services; Information; Arts, Entertainment & Recreation; Real Estate, Rental &
Leasing; Professional, Scientific & Technical Services; and Transportation &
Warehousing.
WHAT RESPONDENTS ARE SAYING
* “Steady improvement toward lower costs in food and beverages; however, avian
bird flu may affect pricing moving forward. Already seeing increases in
chicken and eggs. In the technology space, prices are not decreasing but
holding steady.” [Accommodation & Food Services]
* “Movie production is recovering, which should increase volume in movie
theaters in the second half of 2024.” [Arts, Entertainment & Recreation]
* “Although it varies by global region, we’re starting to see market softening
in terms of price and lead time stability. That bidders are providing
reasonable bid validities is an indication that much of the supply chain is
coming into supply and demand equilibrium. Electrical equipment remains the
outlier.” [Construction]
* “Inflation is raising our unit cost on products and services when compared to
last year’s expenditures.” [Public Administration]
* “Continue to be challenged with inflationary pressure through labor and
service cost increases, but we are working hard at finding utilization
savings to offset where possible.” [Health Care & Social Assistance]
* “Business remains soft.” [Information]
* “We are still experiencing supply chain challenges with increased costs of
raw materials, particularly chemicals and their containers, as well as higher
U.S. and overseas freight transportation costs. A containers shortage has
increased costs and slowed down the supply chain.” [Management of Companies &
Support Services]
* “Steady demand has been favorable during this traditionally slower season.
Pricing is stable and the supply chain is strong. Employee recruitment and
retention has been a challenge in some areas; however, the situation isn’t
critical.” [Retail Trade]
* “Construction, administrative and technical/scientific labor are in high
demand. Long lead times for brass plumbing fittings and electrical equipment
and components.” [Utilities]
* “The overall market has definitely slowed down. Our business is up year over
year and month over month; based on our advanced analytics, we know that
growth is coming from new customers. This means we are taking market share
from our competitors.” [Wholesale Trade]
ISM® SERVICES SURVEY RESULTS AT A GLANCE COMPARISON OF ISM® SERVICES AND ISM®
MANUFACTURING SURVEYS*
APRIL 2024
Services PMI® Manufacturing PMI® Index Series Index Apr Series Index Mar
Percent Point Change Direction Rate of Change Trend** (Months) Series Index Apr
Series Index Mar Percent Point Change Services PMI® 49.4 51.4 -2.0 Contracting
From Growing 1 49.2 50.3 -1.1 Business Activity/ Production 50.9 57.4 -6.5
Growing Slower 47 51.3 54.6 -3.3 New Orders 52.2 54.4 -2.2 Growing Slower 16
49.1 51.4 -2.3 Employment 45.9 48.5 -2.6 Contracting Faster 3 48.6 47.4 +1.2
Supplier Deliveries 48.5 45.4 +3.1 Faster Slower 3 48.9 49.9 -1.0 Inventories
53.7 45.6 +8.1 Growing From Contracting 1 48.2 48.2 0.0 Prices 59.2 53.4 +5.8
Increasing Faster 83 60.9 55.8 +5.1 Backlog of Orders 51.1 44.8 +6.3 Growing
From Contracting 1 45.4 46.3 -0.9 New Export Orders 47.9 52.7 -4.8 Contracting
From Growing 1 48.7 51.6 -2.9 Imports 53.6 52.4 +1.2 Growing Faster 4 51.9 53.0
-1.1 Inventory Sentiment 62.9 55.7 +7.2 Too High Faster 12 N/A N/A N/A
Customers' Inventories N/A N/A N/A N/A N/A N/A 47.8 44.0 +3.8 Overall Economy
Growing Slower 16 Services Sector Contracting From Growing 1
Services ISM® Report On Business® data is seasonally adjusted for the Business
Activity, New Orders, Employment and Prices indexes. Manufacturing ISM® Report
On Business® data is seasonally adjusted for New Orders, Production, Employment
and Inventories indexes.
**Number of months moving in current direction.
COMMODITIES REPORTED UP/DOWN IN PRICE AND IN SHORT SUPPLY
COMMODITIES UP IN PRICE
--------------------------------------------------------------------------------
Caustic Soda; Construction Contractors (4); Copper Wire (2); Diesel Fuel (2);
Food and Beverages; Fuel (3); Gasoline (3); Heating, Ventilation and Air
Conditioning (HVAC) Equipment (3); Labor (41); Labor — Technology and Web
Related; Office Supplies; Oriented Strand Board (OSB); Paper; Software
Maintenance; and Unleaded Fuel (2).
COMMODITIES DOWN IN PRICE
--------------------------------------------------------------------------------
Propane.
COMMODITIES IN SHORT SUPPLY
--------------------------------------------------------------------------------
Brass Fittings; Electrical Components (4); Electrical Equipment (2); Labor (3);
Switchgear (2); and Transformers.
Note: The number of consecutive months the commodity is listed is indicated
after each item.
--------------------------------------------------------------------------------
APRIL 2024 SERVICES INDEX SUMMARIES
--------------------------------------------------------------------------------
SERVICES PMI®
In April, the Services PMI® registered 49.4 percent, a 2-percentage point
decrease compared to the March reading of 51.4 percent. A reading above 50
percent indicates the services sector economy is generally expanding; below 50
percent indicates it is generally contracting.
A Services PMI® above 49 percent, over time, generally indicates an expansion of
the overall economy. Therefore, the April Services PMI® indicates the overall
economy is growing for the 16th consecutive month. Nieves says, “The past
relationship between the Services PMI® and the overall economy indicates that
the Services PMI® for April (49.4 percent) corresponds to a 0.2-percent increase
in real gross domestic product (GDP) on an annualized basis.”
SERVICES PMI® HISTORY
Month Services PMI® Apr 2024 49.4 Mar 2024 51.4 Feb 2024 52.6 Jan 2024 53.4 Dec
2023 50.5 Nov 2023 52.5
Month Services PMI® Oct 2023 51.9 Sep 2023 53.4 Aug 2023 54.1 Jul 2023 52.8 Jun
2023 53.6 May 2023 51.0
Average for 12 months - 52.2
High - 54.1
Low - 49.4
--------------------------------------------------------------------------------
BUSINESS ACTIVITY
ISM®’s Business Activity Index registered 50.9 percent in April, 6.5 percentage
points lower than the 57.4 percent recorded in March, indicating growth for the
47th consecutive month. The Business Activity Index has been in expansion
territory since recovering from its coronavirus pandemic lows. Comments from
respondents include: “Lower volume of work orders” and “Fewer elective
surgeries.”
The 13 industries reporting an increase in business activity for the month of
April — listed in order — are: Accommodation & Food Services; Agriculture,
Forestry, Fishing & Hunting; Finance & Insurance; Mining; Wholesale Trade;
Utilities; Educational Services; Public Administration; Retail Trade;
Construction; Health Care & Social Assistance; Management of Companies & Support
Services; and Transportation & Warehousing. The four industries reporting a
decrease in business activity for the month of April are: Other Services; Arts,
Entertainment & Recreation; Real Estate, Rental & Leasing; and Information.
Business Activity % Higher % Same % Lower Index Apr 2024 18.9 69.5 11.6 50.9 Mar
2024 21.9 71.2 6.9 57.4 Feb 2024 23.9 67.0 9.1 57.2 Jan 2024 20.5 59.7 19.8 55.8
--------------------------------------------------------------------------------
NEW ORDERS
ISM®’s New Orders Index registered 52.2 percent in April, 2.2 percentage points
lower than the reading of 54.4 percent registered in March. The index indicated
expansion for the 16th consecutive month after contracting in December 2022,
ending a string of 30 consecutive months of growth. Comments from respondents
include: “Reduced orders and prospect conversions” and “Sales leads down.”
The 12 industries reporting an increase in new orders for the month of April —
listed in order — are: Accommodation & Food Services; Agriculture, Forestry,
Fishing & Hunting; Wholesale Trade; Construction; Mining; Utilities; Real
Estate, Rental & Leasing; Finance & Insurance; Retail Trade; Educational
Services; Public Administration; and Health Care & Social Assistance. The three
industries reporting a decrease in new orders for the month of April are: Other
Services; Information; and Professional, Scientific & Technical Services.
New Orders % Higher % Same % Lower Index Apr 2024 19.9 69.7 10.4 52.2 Mar 2024
20.9 68.5 10.6 54.4 Feb 2024 24.6 68.0 7.4 56.1 Jan 2024 21.5 57.7 20.8 55.0
--------------------------------------------------------------------------------
EMPLOYMENT
Employment activity in the services sector contracted in April for the fourth
time in five months, preceded by six consecutive months of growth from June to
November. The Employment Index registered 45.9 percent, down 2.6 percentage
points from the March figure of 48.5 percent. Comments from respondents include:
“Delayed hiring due to tightness in the labor market” and “Hiring freeze in
place; not backfilling positions after people were ‘RIFed’ (reduction in force),
retired, or left our organization.”
The five industries reporting an increase in employment in April are:
Accommodation & Food Services; Management of Companies & Support Services;
Construction; Mining; and Utilities. The 10 industries reporting a decrease in
employment in April — listed in order — are: Other Services; Real Estate, Rental
& Leasing; Information; Finance & Insurance; Wholesale Trade; Retail Trade;
Public Administration; Transportation & Warehousing; Health Care & Social
Assistance; and Professional, Scientific & Technical Services.
Employment % Higher % Same % Lower Index Apr 2024 12.8 67.6 19.6 45.9 Mar 2024
19.1 61.1 19.8 48.5 Feb 2024 13.5 65.9 20.6 48.0 Jan 2024 16.2 63.3 20.5 50.5
--------------------------------------------------------------------------------
SUPPLIER DELIVERIES
In April, the Supplier Deliveries Index indicated faster performance for the
third consecutive month after a single month of slower performance preceded by
three consecutive months of faster performance. The index registered 48.5
percent, up 3.1 percentage points from the 45.4 percent recorded in March. The
index has been in contraction (or “faster”) territory in 13 of the last 15
months. A reading above 50 percent indicates slower deliveries, while a reading
below 50 percent indicates faster deliveries. Comments from respondents include:
“International impacts from Panama Canal drought, Red Sea and Suez Canal turmoil
and Baltimore’s Key Bridge collapse — closely monitoring logistics” and “Slight
uptick in normalizing delivery times.”
The five industries reporting slower deliveries in April are: Retail Trade;
Educational Services; Health Care & Social Assistance; Construction; and
Utilities. The six industries reporting faster supplier deliveries for the month
of April — listed in order — are: Wholesale Trade; Mining; Accommodation & Food
Services; Information; Transportation & Warehousing; and Public Administration.
Seven industries reported no change in April.
Supplier Deliveries % Slower % Same % Faster Index Apr 2024 2.5 91.9 5.6 48.5
Mar 2024 3.8 83.2 13.0 45.4 Feb 2024 5.0 87.7 7.3 48.9 Jan 2024 11.3 82.2 6.5
52.4
--------------------------------------------------------------------------------
INVENTORIES
The Inventories Index grew in April following four consecutive months of
contraction. The reading of 53.7 percent was an 8.1-percentage point increase
compared to the 45.6 percent reported in March. Of the total respondents in
April, 48 percent indicated they do not have inventories or do not measure them.
Comments from respondents include: “Slightly higher levels in preparation of
hurricane season to have adequate supplies needed for a disaster response” and
“Tend to bulk up inventory at the end of the first quarter and into the second
quarter, as we hit demand increases throughout the spring and summer.”
The six industries reporting an increase in inventories in April — in the
following order — are: Retail Trade; Agriculture, Forestry, Fishing & Hunting;
Transportation & Warehousing; Public Administration; Real Estate, Rental &
Leasing; and Wholesale Trade. The seven industries reporting a decrease in
inventories in April, in order, are: Mining; Construction; Management of
Companies & Support Services; Professional, Scientific & Technical Services;
Information; Health Care & Social Assistance; and Utilities.
Inventories % Higher % Same % Lower Index Apr 2024 17.3 72.8 9.9 53.7 Mar 2024
10.7 69.7 19.6 45.6 Feb 2024 11.1 71.9 17.0 47.1 Jan 2024 15.4 67.3 17.3 49.1
--------------------------------------------------------------------------------
PRICES
Prices paid by services organizations for materials and services increased in
April for the 83rd consecutive month. The Prices Index registered 59.2 percent,
5.8 percentage points higher than the 53.4 percent registered in March. The
April reading is the 22nd in a row near or below 70 percent (including 12 of the
last 13 months at or below 60 percent), following 10 straight months of readings
near or above 80 percent from September 2021 to June 2022.
Fourteen services industries reported an increase in prices paid during the
month of April, in the following order: Construction; Management of Companies &
Support Services; Public Administration; Other Services; Retail Trade;
Accommodation & Food Services; Educational Services; Finance & Insurance; Real
Estate, Rental & Leasing; Wholesale Trade; Information; Utilities; Health Care &
Social Assistance; and Professional, Scientific & Technical Services. No
industry reported a decrease in prices for the month of April.
Prices % Higher % Same % Lower Index Apr 2024 26.9 70.6 2.5 59.2 Mar 2024 22.5
65.2 12.3 53.4 Feb 2024 22.9 71.8 5.3 58.6 Jan 2024 35.5 55.4 9.1 64.0
NOTE: COMMODITIES REPORTED AS UP IN PRICE AND DOWN IN PRICE ARE LISTED IN THE
COMMODITIES SECTION OF THIS REPORT.
--------------------------------------------------------------------------------
BACKLOG OF ORDERS
The ISM® Services Backlog of Orders Index grew in April after a contraction in
March, preceded by two consecutive months of expansion and two months of
contraction before that. The index reading of 51.1 percent is 6.3 percentage
points higher than the 44.8 percent reported in March. Of the total respondents
in April, 45 percent indicated they do not measure backlog of orders. Respondent
comments include: “No backlog; supply is fine” and “Fewer backlogs for many
areas, but vehicles and heavy equipment still impacted.”
The nine industries reporting an increase in order backlogs in April, in order,
are: Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing;
Management of Companies & Support Services; Utilities; Educational Services;
Finance & Insurance; Construction; Transportation & Warehousing; and
Professional, Scientific & Technical Services. The six industries reporting a
decrease in order backlogs in April — in the following order — are: Other
Services; Information; Mining; Public Administration; Wholesale Trade; and
Health Care & Social Assistance.
Backlog of Orders % Higher % Same % Lower Index Apr 2024 13.7 74.8 11.5 51.1 Mar
2024 8.9 71.7 19.4 44.8 Feb 2024 10.4 79.7 9.9 50.3 Jan 2024 17.7 67.4 14.9 51.4
--------------------------------------------------------------------------------
NEW EXPORT ORDERS
Orders and requests for services and other non-manufacturing activities to be
provided outside of the U.S. by domestically based companies decreased in April
after expanding for 11 of the previous 12 months, with the lone contraction in
October. The New Export Orders Index registered 47.9 percent, a 4.8-percentage
point decrease from the 52.7 percent reported in March. Of the total respondents
in April, 74 percent indicated they do not perform, or do not separately
measure, orders for work outside of the U.S.
The three industries reporting an increase in new export orders in April are:
Transportation & Warehousing; Utilities; and Professional, Scientific &
Technical Services. The three industries reporting a decrease in new export
orders in April are: Retail Trade; Information; and Wholesale Trade. Twelve
industries reported no change in new export orders in April.
New Export Orders % Higher % Same % Lower Index Apr 2024 5.6 84.6 9.8 47.9 Mar
2024 8.1 89.2 2.7 52.7 Feb 2024 9.2 84.8 6.0 51.6 Jan 2024 17.7 76.8 5.5 56.1
--------------------------------------------------------------------------------
IMPORTS
The Imports Index expanded at a faster rate in April, registering 53.6 percent,
1.2 percentage points higher than March’s reading of 52.4 percent. The index has
indicated expansion in 17 of the last 20 months, with contractions in March and
December 2023 and an “unchanged” status (a reading of 50 percent) in May.
Sixty-nine percent of respondents reported that they do not use, or do not track
the use of, imported materials.
The seven industries reporting an increase in imports for the month of April, in
order, are: Accommodation & Food Services; Real Estate, Rental & Leasing;
Transportation & Warehousing; Management of Companies & Support Services;
Utilities; Wholesale Trade; and Professional, Scientific & Technical Services.
The two industries reporting a decrease in imports in April are: Other Services;
and Health Care & Social Assistance. Nine industries reported no change in
imports in April.
Imports % Higher % Same % Lower Index Apr 2024 10.5 86.1 3.4 53.6 Mar 2024 7.7
89.3 3.0 52.4 Feb 2024 10.9 86.7 2.4 54.3 Jan 2024 23.3 73.2 3.5 59.9
--------------------------------------------------------------------------------
INVENTORY SENTIMENT
The ISM® Services Inventory Sentiment Index grew for the 12th consecutive month
in April after one month of contraction in April 2023, preceded by four
consecutive months of growth and four months of contraction from August to
November 2022. The index registered 62.9 percent, a 7.2-percentage point
increase from March’s figure of 55.7 percent. This reading indicates that
respondents feel their inventories are too high when correlated to business
activity levels.
The 11 industries reporting sentiment that their inventories were too high in
April — listed in order — are: Real Estate, Rental & Leasing; Agriculture,
Forestry, Fishing & Hunting; Other Services; Wholesale Trade; Retail Trade;
Mining; Utilities; Information; Health Care & Social Assistance; Management of
Companies & Support Services; and Construction. The only industry reporting a
feeling that their inventories were too low in April is Transportation &
Warehousing. Six industries indicated no change in inventory sentiment in April.
Inventory Sentiment % Too High % About Right % Too Low Index Apr 2024 31.2 63.4
5.4 62.9 Mar 2024 18.6 74.2 7.2 55.7 Feb 2024 18.8 75.7 5.5 56.7 Jan 2024 23.7
71.2 5.1 59.3
ABOUT THIS REPORT
DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports
released across the country. The national report's information reflects the
entire U.S., while the regional reports contain primarily regional data from
their local vicinities. Also, the information in the regional reports is not
used in calculating the results of the national report. The information compiled
in this report is for the month of April 2024.
The data presented herein is obtained from a survey of supply executives in the
services sector based on information they have collected within their respective
organizations. ISM® makes no representation, other than that stated within this
release, regarding the individual company data collection procedures. The data
should be compared to all other economic data sources when used in
decision-making.
DATA AND METHOD OF PRESENTATION
The Services ISM® Report On Business® (formerly the Non-Manufacturing ISM®
Report On Business®) is based on data compiled from purchasing and supply
executives nationwide. Membership of the Services Business Survey Committee
(formerly Non-Manufacturing Business Survey Committee) is diversified by NAICS,
based on each industry’s contribution to gross domestic product (GDP). The
Services Business Survey Committee responses are divided into the following
NAICS code categories: Agriculture, Forestry, Fishing & Hunting; Mining;
Utilities; Construction; Wholesale Trade; Retail Trade; Transportation &
Warehousing; Information; Finance & Insurance; Real Estate, Rental & Leasing;
Professional, Scientific & Technical Services; Management of Companies & Support
Services; Educational Services; Health Care & Social Assistance; Arts,
Entertainment & Recreation; Accommodation & Food Services; Public
Administration; and Other Services (services such as Equipment & Machinery
Repairing; Promoting or Administering Religious Activities; Grantmaking;
Advocacy; and Providing Dry-Cleaning & Laundry Services, Personal Care Services,
Death Care Services, Pet Care Services, Photofinishing Services, Temporary
Parking Services, and Dating Services). The data are weighted based on each
industry’s contribution to GDP. According to BEA estimates (the average of the
fourth quarter 2022 GDP estimate and the GDP estimates for first, second, and
third quarter 2023, as released on December 21, 2023), the six largest services
sectors are: Real Estate, Rental & Leasing; Public Administration; Professional,
Scientific, & Technical Services; Health Care & Social Assistance; Information;
and Finance & Insurance.
Survey responses reflect the change, if any, in the current month compared to
the previous month. For each of the indicators measured (Business Activity, New
Orders, Backlog of Orders, New Export Orders, Inventory Change, Inventory
Sentiment, Imports, Prices, Employment and Supplier Deliveries), this report
shows the percentage reporting each response and the diffusion index. Responses
represent raw data and are never changed. Data is seasonally adjusted for
Business Activity, New Orders, Prices and Employment. All seasonal adjustment
factors are subject annually to relatively minor changes when conditions warrant
them. The remaining indexes have not indicated significant seasonality.
The Services PMI® is a composite index based on the diffusion indexes for four
of the indicators with equal weights: Business Activity (seasonally adjusted),
New Orders (seasonally adjusted), Employment (seasonally adjusted) and Supplier
Deliveries. Diffusion indexes have the properties of leading indicators and are
convenient summary measures showing the prevailing direction of change and the
scope of change. An index reading above 50 percent indicates that the services
economy is generally expanding; below 50 percent indicates that it is generally
declining. Supplier Deliveries is an exception. A Supplier Deliveries Index
above 50 percent indicates slower deliveries and below 50 percent indicates
faster deliveries.
A Services PMI® above 49 percent, over time, indicates that the overall economy,
or gross domestic product (GDP), is generally expanding; below 49 percent, it is
generally declining. The distance from 50 percent or 49 percent is indicative of
the strength of the expansion or decline.
The Services ISM® Report On Business® survey is sent out to Services Business
Survey Committee respondents the first part of each month. Respondents are asked
to ONLY report on U.S. operations for the current month. ISM® receives survey
responses throughout most of any given month, with the majority of respondents
generally waiting until late in the month to submit responses to give the most
accurate picture of current business activity. ISM® then compiles the report for
release on the third business day of the following month.
The industries reporting growth, as indicated in the Services ISM® Report On
Business® monthly report, are listed in the order of most growth to least
growth. For the industries reporting contraction or decreases, those are listed
in the order of the highest level of contraction/decrease to the least level of
contraction/decrease.
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