Tempe, AZ, September 6, Business activity in the non-manufacturing sector increased in August 2005, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business.
The report was issued today by Ralph G. Kauffman, Ph.D., C.P.M., chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee and coordinator of the Supply Chain Management Program, University of Houston-Downtown. "Non-manufacturing business activity increased for the 29th consecutive month in August," Kauffman said. He added, "Business Activity increased at a faster rate in August than in July. New Orders, Employment and Inventories also increased at faster rates. Many members' comments expressed concern about the continuing increase in oil and gas prices and its impact on the prices of other items and on budgets. The overall indication is continued economic growth in the non-manufacturing sector in August at a faster rate of increase than in July."
TOP PERFORMING INDUSTRIES
The 13 industries reporting growth in August — listed in order — are: Mining; Transportation; Utilities; Real Estate; Legal Services, Insurance; Other Services*; Retail Trade; Health Services; Communication; Business Services; Construction; and Public Administration. The four industries reporting activity the same as last month are: Agriculture; Wholesale Trade; Finance & Banking; and Entertainment. No industry is reporting decreased activity from July to August.
WHAT RESPONDENTS ARE SAYING …
"Things look positive for the next six months — construction is going well." (Construction)
"Concern about fuel prices affecting coming season (winter) volume and per diem. Advance sales ensure substantial volume. Overall energy costs trickling down to operating commodities and cost of goods expenses are concerns." (Entertainment)
"How high will fuel costs go?" (Insurance)
"General lack of optimism stemming from recent increases in fuel and energy costs." (Other Services)
"Pricing increases are now being passed along on many goods and services as a direct result of higher gas and oil prices. This will have a negative effect in the near future on spending plans." (Public Administration)
"Increasing railroad freight and fuel surcharges pose problems." (Wholesale Trade)
