ISM Non-Manufacturing Index

ISM Non-Manufacturing Index: The Institute for Supply Management’s non-manufacturing index decreased by 2.3 points month on month (4.1% m/m) to 54.4 in October 2022.

The ISM non-manufacturing survey measures the rate and direction of change in activity in non-manufacturing industries. Surveys are sent to more than 400 purchasing managers in 18 industries. Survey responses reflect the change in the current month compared with the previous month. A value of 50 is neutral, while less than 50 denotes contracting non-manufacturing activity and greater than 50 denotes expanding activity.


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Figure 1 breaks down the composite index and sub-indexes. The business activity sub-index was high this month at 55.7, while the imports sub-index was 50.4.

The 16 services industries reporting growth in October — listed in order — are: Mining; Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; Transportation & Warehousing; Accommodation & Food Services; Construction; Utilities; Other Services; Information; Retail Trade; Professional, Scientific & Technical Services; Educational Services; Finance & Insurance; Public Administration; Health Care & Social Assistance; and Wholesale Trade. The two industries reporting a decrease in the month of October are: Management of Companies & Support Services; and Real Estate, Rental & Leasing.

“Customers are starting to delay projects and/or entering smaller-scale scopes of work. We believe this is a continuation of an uncertain economic environment.” [Construction]

At Gerdau, we closely monitor the ISM non-manufacturing index since it is an excellent barometer of the present strength, as well as a window on the likely short-run future, of the U.S. non-manufacturing economy. We have seen that a strengthening non-manufacturing economy translates to improved steel consumption.



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