ISM Non-Manufacturing Index Rose to 55.7% in April

Tempe, AZ, May 4, 2016—The Non-Manufacturing ISM Report On Business registered 55.7% in April, 1.2 percentage points higher than the March reading of 54.5%.

This represents continued growth in the non-manufacturing sector at a slightly faster rate.

The Non-Manufacturing Business Activity Index decreased to 58.8%, 1 percentage point lower than the March reading of 59.8%, reflecting growth for the 81st consecutive month, at a slower rate in April.

The New Orders Index registered 59.9%, 3.2 percentage points higher than the reading of 56.7% in March.

The Employment Index increased 2.7 percentage points to 53% from the March reading of 50.3% and indicates growth for the second consecutive month.

The Prices Index increased 4.3 percentage points from the March reading of 49.1% to 53.4%, indicating prices increased in April for the first time in three months.

According to the NMI, 13 non-manufacturing industries reported growth in April. The majority of the respondents’ comments reflect optimism about the business climate and the direction of the economy.

The 13 non-manufacturing industries reporting growth in April—listed in order—are Information; Management of Companies & Support Services; Accommodation & Food Services; Wholesale Trade; Health Care & Social Assistance; Utilities; Finance & Insurance; Real Estate, Rental & Leasing; Construction; Agriculture, Forestry, Fishing & Hunting; Public Administration; Professional, Scientific & Technical Services; and Retail Trade.

The four industries reporting contraction in April are Other Services; Mining; Transportation & Warehousing; and Educational Services.