Tempe, AZ, September 6, 2006--Business activity in the non-manufacturing sector increased in August 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 41st consecutive month in August," Nieves said. He added, "Business Activity increased at a faster rate in August than in July. Employment, New Orders, New Export Orders, Imports, Inventories and Prices increased at a slower rate. Eleven of 18 non-manufacturing industry sectors report increased activity in August. Members' comments in August are mostly positive concerning current business conditions. Prices, fuel expenses, energy costs and interest rates remain areas of concern. The Prices Index decreased 2.4 percentage points this month to 72.4 percent. The overall indication in August is continued economic growth in the non-manufacturing sector at a faster pace than in July."
The 11 industries reporting growth in August--listed in order--are: Management of Companies & Support Services; Transportation & Warehousing; Other Services*; Educational Services; Utilities; Construction; Retail Trade; Accommodation & Food Services; Professional, Scientific & Technical Services; Information; and Finance & Insurance. The three industries reporting activity the same as last month are: Agriculture, Forestry, Fishing & Hunting; Mining; and Arts, Entertainment & Recreation. The four industries reporting decreased activity from July to August are: Real Estate, Rental & Leasing; Health Care & Social Assistance; Wholesale Trade; and Public Administration.
What respondents are saying:.
"Oil price fluctuations, availability of travel-related services and security issues in numerous countries are having a negative impact on new business." (Professional, Scientific & Technical Services)
"Increase in demand for loans." (Finance & Insurance)
"Contract manufacturing demand is up." (Management of Companies & Support Services)
"Increased construction activity." (Utilities)
"Business strong." (Retail Trade)
"Market trend has stabilized since last month in respect to inventory and commodities." (Construction)
