The non-manufacturing PMI follows on the heels of a good showing for manufacturing.
Both indices rose in November according to the ISM Report on Business.
| Index | NovemberOctober | October | PP Change | Direction | Rate of Change | Trend in Months |
|---|---|---|---|---|---|---|
| NMI® | 57.2 | 54.8 | 2.4 | growing | Faster | 82 |
| Business Activity / Production | 61.7 | 57.7 | 4.0 | growing | Faster | 88 |
| New Orders | 57.0 | 57.7 | -0.7 | Growing | Slower | 88 |
| Employment | 58.2 | 53.1 | 5.1 | Growing | Faster | 6 |
| Supplier Deliveries | 52.0 | 50.5 | 1.5 | Slowing | Faster | 11 |
| Inventories | 51.5 | 52.0 | -0.5 | growing | Slower | 3 |
| Prices | 56.3 | 56.6 | -0.3 | Increasing | Slower | 8 |
| Backlog of Orders | 51.0 | 52.0 | -1.0 | Growing | Slower | 3 |
| New Export Orders | 57.0 | 55.5 | 1.5 | Growing | Faster | 3 |
| Imports | 54.0 | 53.0 | 1.0 | Growing | Faster | 10 |
| Inventory Sentiment | 60.5 | 62.0 | -1.5 | Too High | Slower | 234 |
This was a solid report with a couple of caveats.
- The ISM is a diffusion index as are the Fed regional manufacturing reports. Such indices measure improvement or not. For example, employment rising by 10 employees at one company will offset employment falling by 500 at another company (or vice versa).
- The stronger US dollar and troubles in Europe will at some point weigh on exports.
For a discussion of the manufacturing PMI, please see Manufacturing ISM Increases Slightly to 53.2.
Mike “Mish” Shedlock
