The non-manufacturing PMI follows on the heels of a good showing for manufacturing.

Both indices rose in November according to the ISM Report on Business.

Index NovemberOctober October PP Change Direction Rate of Change Trend in Months
NMI® 57.2 54.8 2.4 growing Faster 82
Business Activity / Production 61.7 57.7 4.0 growing Faster 88
New Orders 57.0 57.7 -0.7 Growing Slower 88
Employment 58.2 53.1 5.1 Growing Faster 6
Supplier Deliveries 52.0 50.5 1.5 Slowing Faster 11
Inventories 51.5 52.0 -0.5 growing Slower 3
Prices 56.3 56.6 -0.3 Increasing Slower 8
Backlog of Orders 51.0 52.0 -1.0 Growing Slower 3
New Export Orders 57.0 55.5 1.5 Growing Faster 3
Imports 54.0 53.0 1.0 Growing Faster 10
Inventory Sentiment 60.5 62.0 -1.5 Too High Slower 234

This was a solid report with a couple of caveats.

  1. The ISM is a diffusion index as are the Fed regional manufacturing reports. Such indices measure improvement or not. For example, employment rising by 10 employees at one company will offset employment falling by 500 at another company (or vice versa).
  2. The stronger US dollar and troubles in Europe will at some point weigh on exports.

For a discussion of the manufacturing PMI, please see Manufacturing ISM Increases Slightly to 53.2.

Mike “Mish” Shedlock