ISM Index Shows Non-Manufacturing Growth Slower

June 3, 2005
Like the manufacturing sector, the non-manufacturing sector of the U.S. continued to grow in May but at a slower rate than in April. The Institute for Supply Management's (ISM) business activity index for non-manufacturing was 58.5% in May, 3.2 ...

Like the manufacturing sector, the non-manufacturing sector of the U.S. continued to grow in May but at a slower rate than in April.

The Institute for Supply Management's (ISM) business activity index for non-manufacturing was 58.5% in May, 3.2 percentage points lower than April's 61.7%. A figure above 50% indicates the non-manufacturing sector generally is growing; a figure below 50% signals that it is contracting.

Despite the overall slower rate of growth among banks, financial institutions, construction firms, utilities, mining companies and other non-manufacturers, new orders, order backlogs, and employment grew faster in May than in April, according to Tempe, Ariz.-based ISM. ". . . The faster rates of increase for new orders and backlog of orders in May indicate that business activity in non-manufacturing industries should continue at relatively healthy levels in the near-term future," says Ralph G. Kauffman, chair of ISM's non-manufacturing business survey committee and coordinator of the supply chain management program at the University of Houston-Downtown.

Popular Sponsored Recommendations

Four Common OT Cybersecurity Pitfalls for Manufacturers

April 4, 2023
For the last six years, Dragos has leveraged their Professional Services team to develop an on-the-ground understanding of the realities facing the industrial community and to...

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!