Monday, May 5, 2014

ISM Nonmanufacturing Index Rose in April

The ISM nonmanufacturing index improved for the second consecutive month, growing 2.1 points to 55.2. The index finally recovered from the winter and is at its highest level since October 2013. The index has been above its expansionary threshold of 50 for a year now. The details of the report were generally strong, although a few week spots such as employment persist.

Business output jumped to 60.9 in April. It’s the strongest growth in 16 months. Exports entered into expansionary territory, growing 7.5 index points to 57.0. New orders also jumped, gaining 4.8 points and settling at 58.2.

There still were some weak spots in the report. The unemployment index declined to 51.3, however it still remains in expansionary territory. Backlogged orders dropped to 49.0 and below the 50 threshold. This was expected. Backlogged orders were higher during the harsh winter and are returning to equilibrium.

Read the ISM report.

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