ISM Non-Manufacturing Back to 2007 Levels
From today's Non-Manufacturing ISM Report On Business:
"ISM's Non-Manufacturing Business Activity Index in May registered 61.1 percent, an increase of 0.8 percentage point when compared to the 60.3 percent registered in April (see chart above). Sixteen out of 18 industries reported increased business activity, and one industry reported decreased activity for the month of May. One industry reported no change from April.
The industries reporting growth of business activity in May — listed in order — are: Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Management of Companies & Support Services; Accommodation & Food Services; Agriculture, Forestry, Fishing & Hunting; Mining; Wholesale Trade; Construction; Transportation & Warehousing; Information; Retail Trade; Professional, Scientific & Technical Services; Other Services; Public Administration; Utilities; and Finance & Insurance. The only industry reporting decreased business activity in May is Health Care & Social Assistance."
MP: The ISM Business Activity Index for non-manufacturing industries has now been in expansion (index > 50) in 9 out of the last ten months, and for six straight months, both for the first time since 2007, before the recession started. The last time the Business Activity Index was above 61 or higher was February 2006, more than four years ago. These recent improvements in the ISM Business Activity index provide more evidence of an ongoing, V-shaped economic recovery.
Note: The overall ISM Non-Manufacturing Composite Index (NMINMI (started in January 2008), and that reading still signals expansion (above 50). And as Brian Wesbury points out, the Business Index is more closely related to real GDP growth than the overall NMI.