ISM Non-manufacturing index - released 10:00

Full report here.

January 2010 Non-Manufacturing ISM Report On Business^®

NMI (Non-Manufacturing Index) at 50.5%

DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report's information reflects the entire United States, 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 January 2010.
This report reflects the U.S. Department of Commerce's recently completed annual adjustments to the seasonal adjustment factors used to calculate the indexes.

Business Activity Index at 52.2%
New Orders Index at 54.7%
Employment Index at 44.6%

(Tempe, Arizona) — Economic activity in the non-manufacturing sector grew in January, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business^®.
The report was issued today by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee; and senior vice president — supply management for Hilton Worldwide. "The NMI (Non-Manufacturing Index) registered 50.5 percent in January, 0.7 percentage point higher than the seasonally adjusted 49.8 percent registered in December, indicating growth in the non-manufacturing sector. The Non-Manufacturing Business Activity Index decreased 1 percentage point to 52.2 percent, reflecting growth for the second consecutive month. The New Orders Index increased 2.7 percentage points to 54.7 percent, and the Employment Index increased 1 percentage point to 44.6 percent. The Prices Index increased 1.6 percentage points to 61.2 percent in January, indicating an increase in prices paid from December. According to the NMI, four non-manufacturing industries reported growth in January. Respondents' comments overall are cautiously optimistic about business conditions."

INDUSTRY PERFORMANCE (Based on the NMI)

The four industries reporting growth in January based on the NMI composite index are: Other Services; Utilities; Information; and Wholesale Trade. The 11 industries reporting contraction in January — listed in order — are: Arts, Entertainment & Recreation; Mining; Retail Trade; Transportation & Warehousing; Management of Companies & Support Services; Professional, Scientific & Technical Services; Health Care & Social Assistance; Finance & Insurance; Educational Services; Public Administration; and Accommodation & Food Services.

WHAT RESPONDENTS ARE SAYING ...

• "Business is better, but not robust." (Agriculture, Forestry, Fishing & Hunting)
• "Some client capital spend plans have been delayed until 2nd or 3rd quarter." (Professional, Scientific & Technical Services)
• "Outstanding production month, highest since March 2009, but still lower than December 2008." (Wholesale Trade)
• "Commodity prices are starting to rise. We will be trying to mitigate inflationary price trends through longer contracts and value engineering." (Accommodation & Food Services)
• "Improving outlook." (Educational Services)
• "The recent unexpected rise in fuel prices, with no apparent justification, is cause for concern." (Public Administration)

* Non-Manufacturing ISM Report On Business^® data is seasonally adjusted for Business Activity, New Orders, Prices and Employment. Manufacturing ISM Report On Business^® data is seasonally adjusted for New Orders, Production, Employment, Supplier Deliveries and Inventories.
** Number of months moving in current direction.
Indexes reflect newly released seasonal adjustment factors.

COMMODITIES REPORTED UP / DOWN IN PRICE, and IN SHORT SUPPLY

Commodities Up in Price

Airfare; Beef (3); Diesel Fuel; #1 Diesel Fuel; #2 Diesel Fuel (3); Fuel; Fuel Surcharges; Gasoline (3); Heating Fuel; Latex Products; Medical/Surgical Supplies; Medications; Pharmaceuticals; Pharmacy Supplies; Produce; Tomatoes; and Trash Can Liners.

Commodities Down in Price

Computer & Peripherals; Copy Paper; Corn; Corrugated Boxes; Frozen Juice; Paper; Poultry Products; and Textile Products.

Commodities in Short Supply

Masks [for TB/H1N1 use] (4) is the only commodity reported in short supply.
Note: The number of consecutive months the commodity is listed is indicated after each item.