April 2019 ISM non-manufacturing index
- Lowest since April 2017
- Prior was 56.1
Details:
- Prices paid 55.7 vs 58.7
- New orders 58.1 vs 59.0 prior
- Employment 53.7 vs 55.9 prior
- Business activity 59.5 vs 57.4 prior
- New export orders 57.0 vs 52.5 prior
- Imports 55.0 vs 51.5 prior
- Full report
Overall, this isn't a bad report. Economists were expecting something better but after the Markit PMI, I doubt the market was looking for anything better than this. Within there report there are some decent indications and all the sub-indexes remain comfortably above 50.
Comments in the report:
- "Several produce products - particularly avocados and celery - are experiencing supply issues that are affecting prices. Prices for these items have increased and will continue to remain high [in retail and wholesale markets] for the foreseeable future." (Accommodation & Food Services)
- "We have increased wages to comply with increases in government-mandated minimum-wage levels. In order to retain production employees, we are going to a weekly payroll system." (Agriculture, Forestry, Fishing & Hunting)
- "Extremely difficult to fill direct care personnel positions." (Health Care & Social Assistance)
- "Spring selling season is here for residential construction. Sales are coming, but negotiations are now the norm. Traffic is higher than the last three months, mostly due to lower mortgage rates." (Construction)
- "April business has slowed a bit over March, which is typical. However, while January and February were slightly under last year's numbers for the same months, March [brought] a resurgence in orders that continued into April. So, the March and April order levels are significantly higher than last year's. The volume is helping with negotiation for lower prices, while causing backlogs in the supply chain." (Management of Companies & Support Services)
- "We had a general slowing of business activity beginning in February. We initially believed that February's slowness was primarily weather related, but the slowness continued into March and now April." (Wholesale Trade)
- "The outlook for mining capital expenditures looks like it will not change for a while. [We don't] expect much growth, so we keep working with same team and shrinking capex investments." (Mining)
- "We have experienced several cancellations that have significantly impacted the month's revenue. [The cancellations] appear to be attributed to an international business situation - which was the source for the potential revenue." (Professional, Scientific & Technical Services)
- "Business is steady. Recruiting qualified employees has been difficult." (Public Administration)
- "Continuing momentum in most areas. We continue to have pressure finding talent to support open positions. Starting to see increases in building costs due to increases in labor [costs]. Inventory moving well, with deliveries on time." (Retail Trade)
