He added, "The Business Activity Index decreased 1.7 percentage points to 54.1 percent for the month of November. The New Orders Index decreased with the index registering 51.1 percent. The Employment Index decreased to 50.8 percent and the Prices Index increased to 76.5 percent in November. Ten non-manufacturing industries reported increased activity in November. Members’ comments in November remain mixed and concerned about the economy. The overall indication in November is continued economic growth in the non-manufacturing sector but at a slower pace than in October."
TOP PERFORMING INDUSTRIES
The 10 industries reporting growth in November - listed in order - are: Information; Retail Trade; Real Estate, Rental & Leasing; Public Administration; Other Services(c); Construction; Wholesale Trade; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Utilities. The six industries reporting decreased activity from October to November are: Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Transportation & Warehousing; Accommodation & Food Services; Finance & Insurance; and Arts, Entertainment & Recreation.
WHAT RESPONDENTS ARE SAYING
- "The trend for reduced job awards and for business activities continues. The trend started in October. We do not see any trend for more business activity or job awards throughout the end of December 2007." (Professional, Scientific & Technical Services)
- "Third-quarter profits were significant and fourth-quarter projections are very optimistic for our corporation." (Wholesale Trade)
- "Fallout over the subprime financial markets continues to have an impact on overall business. The impact includes the levels of goods and services required to operate and the impact on budget plans into 2008." (Finance & Insurance)
- "Costs related to crude oil pricing affecting our business." (Agriculture, Forestry, Fishing & Hunting)
- "Increased activity to support newly approved and added 2008 and 2009 capital projects." (Utilities)
Business Activity
ISM’s Non-Manufacturing Business Activity Index in November registered 54.1 percent, indicating a slower rate of growth in business activity compared to October. The implication is that non-manufacturing business activity is continuing to increase for the 56th consecutive month. Ten industries reported increased business activity, and six industries reported decreased activity for the month of November.
The industries reporting growth of business activity in November are: Information; Retail Trade; Real Estate, Rental & Leasing; Public Administration; Other Services(c); Construction; Wholesale Trade; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Utilities. The six industries reporting decreased activity from October to November are: Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Transportation & Warehousing; Accommodation & Food Services; Finance & Insurance; and Arts, Entertainment & Recreation.
Employment
Employment activity in the non-manufacturing sector increased in November, but at a slower rate when compared to October. ISM’s Non-Manufacturing Employment Index for November is 50.8 percent, a 1 percentage point decrease from the 51.8 percent reported in October. Five industries reported increased employment, four reported a decrease, and nine indicated employment is unchanged from October. Comments from respondents include: “Reducing staff” and “Positions remaining unfilled or being filled by outside consultants, as opposed to full-time employees.”
The industries reporting growth in employment in November are: Real Estate, Rental & Leasing; Transportation & Warehousing; Information; Professional, Scientific & Technical Services; and Public Administration. The four industries reporting a reduction in employment in November are: Management of Companies & Support Services; Health Care & Social Assistance; Construction; and Arts, Entertainment & Recreation.
New Export Orders
Orders and requests for services and other non-manufacturing activities to be provided outside of the United States by domestically based personnel increased for the month of November. The New Export Orders Index for November registered 55.5 percent, compared to October’s index of 56 percent. Of the total respondents in November, 68 percent indicated they either do not perform, or do not separately measure, orders for work outside of the United States.
The industries reporting an increase in new export orders in November are: Construction; Arts, Entertainment & Recreation; Management of Companies & Support Services; Finance & Insurance; Professional, Scientific & Technical Services; Wholesale Trade; and Retail Trade. The two industries reporting a decrease in export orders are: Accommodation & Food Services and Transportation & Warehousing.
