Global| Mar 03 2005ISM Non-Manufacturing Index Higher
by:Tom Moeller
|in:Economy in Brief
Summary
The Institute for Supply Management reported that the February Business Activity Index for the non-manufacturing sector rose to 59.8 from 59.2 the prior month. Consensus expectations had been for a decline to 57.0. Since the series' [...]
The Institute for Supply Management reported that the February Business Activity Index for the non-manufacturing sector rose to 59.8 from 59.2 the prior month. Consensus expectations had been for a decline to 57.0.
Since the series' inception in 1997 there has been a 50% correlation between the Business Activity Index and the q/q change in real GDP for services plus construction.
The employment sub index jumped 7.4 points to a record high. Since the series' inception in 1997 there has been a 60% correlation between the level of the ISM non-manufacturing employment index and the m/m change in payroll employment in the service producing plus the construction industries.
The new orders index rose to 61.6, the high end of a tight range held for the last year.
Pricing power eased a bit m/m to the lowest level in nearly a year.
Business Activity Index for the non-manufacturing sector reflects a question separate from the subgroups mentioned above. In contrast, the NAPM manufacturing sector composite index is a weighted average five components.
Financial Market Developments and Economic Activity during Current Account Adjustments in Industrial Economies from the Board of Governors of the Federal Reserve System is available here.
| ISM Nonmanufacturing Survey | Feb | Jan | Feb '04 | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|---|
| Business Activity Index | 59.8 | 59.2 | 60.8 | 62.4 | 58.2 | 55.1 |
| Prices Index | 66.4 | 66.6 | 58.0 | 69.0 | 56.8 | 54.0 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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