ISM Non-Manufacturing Index
ISM Non-Manufacturing Index: The Institute for Supply Management’s non-manufacturing index increased by 0.2 points month on month (+0.3% m/m) to 61.9 in September 2021.
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.
Figure 1 breaks down the composite index and sub-indexes. The new orders sub-index was highest this month at 63.5, while the inventories sub-index was lowest at 46.1.
The 17 services industries reporting growth in September — listed in order — are: Retail Trade; Arts, Entertainment & Recreation; Management of Companies & Support Services; Educational Services; Transportation & Warehousing; Real Estate, Rental & Leasing; Accommodation & Food Services; Construction; Mining; Professional, Scientific & Technical Services; Other Services; Information; Health Care & Social Assistance; Utilities; Public Administration; Wholesale Trade; and Finance & Insurance. The only industry to report a decrease is Agriculture, Forestry, Fishing & Hunting.
“Constraints on logistics from a cost and availability standpoint continue to be an issue.” [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.