Posted on 05/05/2003 7:39:17 AM PDT by Starwind
ISM U.S. non-manufacturing index 50.7 in April Monday May 5, 10:03 am ET
TEMPE, Ariz., May 5 (Reuters) - The Institute for Supply
Management (ISM) on Monday said its monthly non-manufacturing
index, which measures the services sector of the economy, rose
to 50.7 in April from 47.9 in March.
A number above 50 indicates growth, while anything below 50
denotes contraction. Economists polled by Reuters had forecast a
rise to 48.8 in April.
Following are the main ISM non-manufacturing index
components:
April March Feb Jan Dec Nov Oct
Bus Activity 50.7 47.9 53.9 54.5 54.2 55.7 53.9
New Orders 50.6 47.7 53.0 56.2 54.6 55.4 52.3
Backlog Orders 46.0 47.5 50.0 48.0 51.5 50.5 52.0
New Export Ords 52.5 48.5 58.5 53.0 54.0 58.5 49.0
Inventory Sent 62.5 66.0 66.5 64.5 63.0 61.0 64.5
Imports 50.0 55.0 51.5 56.5 51.8 55.1 54.9
Prices Index 56.7 62.0 60.9 57.0 55.3 57.5 56.5
Employment 48.2 47.9 49.0 50.3 46.9 46.3 46.7
Supplier Delivs 50.5 52.0 52.5 52.0 52.5 52.5 53.5
THE SURVEY: ISM, formerly called the National Association of
Purchasing Management, compiles its diffusion index by surveying
more than 370 purchasing executives in more than 62 different
service industries once a month.
The responses reflect the change in the current month
compared to the previous month. The non-manufacturing ISM Report
is seasonally adjusted for business activity, new
orders, imports, and employment.
The ISM non-manufacturing survey was launched in July
1997.
FULL TEXT:
For the text of the Institute for Supply Management's
Purchasing Managers Survey. It can be found on the Internet at
the following address:
http://www.ism.ws/
Monday May 5, 10:19 am ET
NEW YORK, May 5 (Reuters) - The following are comments from U.S. market analysts analysts on Monday after the U.S. Institute of Supply Management reported its non-manufacturing or services sector activity index for April rose to 50.7 from 47.9 in March.
A reading below 50 indicates manufacturing activity is contracting nationwide.
The non-manufacturing new orders index rose to 50.6 from 47.7 in March and the employment index rose in the services sector rose to 48.2 from 47.9.
However, in data from research firm Challenger Gray and Christmas also Monday, planned layoffs at U.S. firms jumped to 146,399 in April from 85,396 in March.
ROBERT BRUSCA, CHIEF ECONOMIST, NATIVE AMERICAN SECURITIES, NEW YORK:
"I see this (ISM) as a spotty report. It was an improvement, maybe a little better than what the market had been expecting, but this is still not a great number. You have be wary of supplier deliveries and backlog orders.
It's a little curious with the employment number because we have had really weak employment numbers. The Challenger (Gray & Christmas) report is the what I'm concerned about. The job market is still weak. I'm not so soon to cheer what is in the ISM non-manufacturing report."
DANA JOHNSON, HEAD OF RESEARCH, BANC ONE CAPITAL MARKETS, CHICAGO:
"It (ISM) was a little stronger than expected, creeping up above the 50 level, that indicates there may be a little bit of expansion in production going on. It was nice to see that rebound, but it is certainly not impressive. I would say activity is still growing very sluggishly, but is a little better than expected. We will really have to see the May ISM numbers to really understand how much of a rebound is beginning to emerge. In the early part of April we were still involved in the situation in Iraq."
"This is mildly encouraging, but leaves it unclear whether anything other than a mild rebound is underway."
ALAN LEVENSON, CHIEF ECONOMIST, T. ROWE PRICE ASSOCIATES INC., BALTIMORE:
"This argues against the economy moving to the downside. I think the index will improve in the months ahead, because I think the economy is in decent shape. But in general, this is not a very informative indicator."
CAROL STONE, DEPUTY CHIEF ECONOMIST, NOMURA SECURITIES INTERNATIONAL INC. NEW YORK:
"It is encouraging because it pushed back above 50. It certainly indicates the weakening in the manufacturing sector has not seeped into the non-manufacturing sector. "The increase of almost three points is good. But it is still not a very high level for that index. This is not a particularly strong level for it, but it is encouraging because it showed a gain."
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