Tempe, AZ, November 3, 2006--Business activity in the non-manufacturing sector increased at a faster rate in October 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 43rd consecutive month in October," Nieves said. He added, "Business Activity increased at a faster rate in October than in September. Inventories, New Export Orders, Imports and Inventory Sentiment also increased at a faster rate. Nine of 18 non-manufacturing industry sectors reported increased activity in October. Members' comments in October continue to be mixed concerning current business conditions; however, the majority of the comments are positive. The Prices Index decreased 4.8 percentage points this month to 51.9 percent. The overall indication in October is continued economic growth in the non-manufacturing sector at a faster pace than in September."
Top Performing Industries
The nine industries reporting growth in October — listed in order — are: Utilities; Information; Retail Trade; Finance & Insurance; Public Administration; Health Care & Social Assistance; Management of Companies & Support Services; Educational Services; and Wholesale Trade. The three industries reporting activity the same as last month are: Agriculture, Forestry, Fishing & Hunting; Mining; and Transportation & Warehousing. The six industries reporting decreased activity from September to October are: Other Services*; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Construction; Accommodation & Food Services; and Professional, Scientific & Technical Services.
What Respondents Are Saying…
"Improved outlook and confidence in the economy." (Educational Services)
"Business continues to be strong." (Management of Companies & Support Services)
"General market conditions are still trending down. Order cancellation rates are higher month over month. New orders are stronger, but are still lower than expected." (Construction)
"Total lending and lending income increased, savings decreased." (Finance & Insurance)
"Things are improving from the standpoint of activity. There remains a constraint of resources such as labor and transportation." (Retail Trade)
"Slowing demand." (Wholesale Trade)
