Non-manufacturing business index flat, but industry optimistic
Index indicates that service related business activity went flat in May with the business activity component increasing while the overall non-manufacturing index improved just slightly in April; respondents slightly mixed, but with more positive expectations.
Today, the Institute for Supply Management released their latest Non-Manufacturing Report on Business indicating that service related business activity went flat in May with the business activity component increasing while the overall non-manufacturing index improved just slightly to 53.7 from 53.5 in April.
At 55.6 the business activity index increased 1.83% since April climbing 2.02% above the level seen a year earlier.
This month, service industry respondents are sounding slightly mixed with more positive expectations than earlier in the year and still reasonably optimistic for economic activity in 2012:
"Q2 will be a strong quarter for us; the building market is starting to wake up." (Construction)
"Increased activity and resources related to projects." (Finance & Insurance)
"The upswing in consumer confidence has led to increased business." (Arts, Entertainment & Recreation)
"While we tend to remain optimistic about the economy, our numbers do not show a surge in activity. It appears consumers are maintaining their 'let's wait and see' attitude." (Accommodation & Food Services)
"Business outlook is flat for the remainder of 2012 with emphasis on cost containment, restructuring and cost-savings projects." (Professional, Scientific & Technical Services)
"Business is still strong, but we have seen some softening in growth since mid-March." (Wholesale Trade)
The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here.To add or view a comment on a guest blog, please go to the blogger's own site by clicking on paper-money.blogspot.com.