Tempe, AZ, December 5, 2006--Business activity in the non-manufacturing sector increased at a faster rate in November 2006, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business.
The report was issued today by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee; and senior vice president--supply management for Hilton Hotels Corporation. "Non-manufacturing business activity increased for the 44th consecutive month in November," Nieves said. He added, "Business Activity increased at a faster rate in November than in October. New Orders, Employment, Backlog of Orders and Imports also increased at a faster rate.
The Prices Index increased 3.7 percentage points this month to 55.6 percent. Eleven of 18 non-manufacturing industries reported increased activity in November. Members' comments in November are mostly positive concerning current business conditions. The overall indication in November is continued economic growth in the non-manufacturing sector at a faster pace than in October."
The eleven industries reporting growth in November--listed in order--are: Wholesale Trade; Information; Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Retail Trade; Arts, Entertainment & Recreation; Health Care & Social Assistance; Real Estate, Rental & Leasing; Other Services*; Utilities; and Professional, Scientific & Technical Services. The three industries reporting activity the same as last month are: Mining; Transportation & Warehousing; and Finance & Insurance. The four industries reporting decreased activity from October to November are: Educational Services; Accommodation & Food Services; Construction; and Public Administration.
What respondents are saying--
"Business still strong." (Utilities)
"New job orders and new and repeat job awards have increased in October and November." (Professional, Scientific & Technical Services)
"Sustained lower energy costs driving customer commitment and increasing operational objectives." (Accommodation & Food Services)
"Generally improving outlook about the economy." (Educational Services)
"The market has not changed in the past month. Sales are slow and order cancellations are still high. The forecast for the next 30 --60 days is the same." (Construction)
Commodities Reported Up/ Down in Price and in Short Supply
Commodities Up in Price
Airfare; Cleaning Supplies; Construction (2); Corn (2); Electricity; Fuel* (2); Gasoline*; Hotel Costs (6); Lumber--Pine, Plywood and Treated*; Office Products & Supplies* (3); Paper (34); Paper Products (10); Soy Oil (2); Soybean Meal (2); Stainless Steel (3); Steel*; and Steel Products* (2).
Commodities Down in Price
Chicken; Copy Paper; Diesel Fuel (3); # 2 Diesel Fuel (3); Fuel* (3); Gasoline* (3); Lumber--Spruce* (6); Office Products & Supplies*; Overnight Shipping; Poly Bags; Polypropylene; Pork; PVC; Steel*; and Steel Products*.
Commodities in Short Supply
Labor; Polypropylene; and Vaccines (3).
