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https://killexams.com/exam_list/PMIKillexams : Ensuring Your Project Management Strategy Keeps Pace With Your Needs
Yaniv Shor is the founder and CEO of Proggio and the author of the book Time to Deliver, a must read for project managers.About Proggio.
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Between the shift to remote work and the accelerating speed of business, project managers have their hands more than full. Juggling multiple projects and multiple teams across multiple locations, as well as relying on multiple software tools to keep everything straight, is enough to make even the most experienced PM feel overwhelmed.
Part of the problem is the fact that the tools most PMs have available haven't kept pace with the evolution and demands of modern project management. Many are still relying on static Excel spreadsheets to track project status and PowerPoint to create reports. According to the Project Management Institute (PMI), 30% of organizations only consider methods that have proved effective for them in the past. In other words, they stick with the status quo.
That's a serious problem because it directly hinders their success. PMI data shows that organizations that can adapt and evolve are nearly twice as agile, more productive and able to deliver better value—meeting their project objectives while staying on budget and with less waste. On the other hand, organizations that can't react quickly to change or are unable to forecast trends and capitalize on them are at risk of being quickly passed up by the competition.
If it's time for a PM modernization effort within your organization, here are some tips to guide the process.
1. Clarify your needs. Modern PM solutions run the gamut from providing top-level project portfolio management to complete end-to-end platforms that include granular task management. Not every organization needs a soup-to-nuts solution. Giving your PMs a powerful project portfolio management platform and allowing end users to continue with the task management tools of their choice may be just fine.
2. Identify your user base. Who is your intended audience? Are they experienced, certified PMPs or business end users with no formal project management experience? While both deserve a solution that's intuitive and easy to use for their level of experience, there's no need to overcomplicate things. Too many features can be overwhelming.
3. Develop a sound organizational structure. For some organizations, it's not just their tools that aren't working—it's their entire structure. Doing the same thing you've always done but adding a new tool won't fix the lack of communication, organization and structure. Consider restructuring business units, if needed, and identifying champions for units or departments so that each has a designated representative.
4. Establish a framework for prioritizing. Regardless of how you manage projects, each one that you undertake must have a direct tie to your overall business strategy. Before diving headfirst into every new idea, establish criteria for deciding what to work on, how new projects will be prioritized and who makes that call. Instead of doing projects for the sake of doing projects, make sure you're working on projects that actually move the needle in terms of business growth.
In order to successfully deploy any new project management strategy, you'll want to make sure you have the capability to address these four key factors that can make or break your program.
• Visibility. The problem with using Excel or even Gantt charts to track project status is that they're perpetually outdated. The entire team depends on the PM to make updates to the timeline by culling through emails, Slack messages and sticky notes. Meanwhile, work on the project is ongoing, so there's virtually no way the PM can keep up.
Look to incorporate real-time visibility to help your team plan ahead and be ready for the next task or phase. A clearer view of project statuses can also allow PMs and project leaders to spot roadblocks sooner so they can adapt quickly before falling behind schedule.
• Efficient reporting. PMs often spend hours compiling data from a myriad of sources into a PowerPoint deck to report to stakeholders. By the time this report is delivered, it's already old news. This is not only an inefficient use of PMPs' time and talent, but it also means leadership never gets a clear picture of project status. It may not find out things are going poorly until they've gone completely off the rails, putting the entire project in jeopardy.
Look to establish systems for efficient, real-time reporting in order to keep stakeholders up to date, which can save the entire organization a tremendous amount of time. Reporting is a critical part of project management, so addressing it upfront can prevent a huge hassle and headache down the road.
• Adaptability. How many times have you been sitting in a meeting, and there's a request to change priorities or objectives? Other times, things go wrong—a setback, a technical glitch or another hurdle means missing an important milestone. These events have obvious downstream effects, but in most organizations, those are hard to quantify.
Ensure you have the ability to adapt to changes. Seeing how a priority change or a roadblock will impact future milestones, project completion and deliverables across the portfolio is essential. Without it, the organization is flying blind and crossing its fingers that everything will work out in the end.
• Resource planning. Employees are already feeling overworked and stressed out, and nearly one in five project managers has considered leaving the profession largely because of burnout. No organization can afford to lose great talent right now (or ever).
Look to create an efficient resource planning process in order to not only prevent burnout but also make sure projects actually get across the finish line. By prioritizing projects around business objectives and gaining clarity into who's working on what, your organization can be much more effective at managing workloads and ensuring projects get over the finish line on time.
While it's reasonable to encounter some challenges as you modernize your project management approach, it's also important that you keep an open mind and be willing to try something new. Having a modern, adaptable project management strategy can provide you the clarity and agility you need to gain and maintain a competitive advantage in a fast-moving business environment.
Technological advancements and improvements in software and automation have made their way into nearly every industry, project management included. Digital tools can help make the job of a project manager more efficient.
Increased Prevalence of AI and Automation
Artificial intelligence, automation, machine learning and data collection and analysis are rapidly becoming critical elements in project management strategies. According to PwC, 77% of high-performing projects utilize project management software to help streamline their work and meet their goals.
AI has the capacity to evaluate outcomes and provide insights into performance strengths and weaknesses, provide organized data to guide important decisions, predict outcomes, estimate timelines, analyze risk and optimize resource distribution. Project management tools and software can also automate time-consuming administrative tasks normally performed by the project manager, leaving the project manager free to focus time and energy on more critical or more nuanced tasks.
Project managers who take the time to understand how the AI and automation processes in their organization can complement their role will be well-prepared to take advantage of this resource.
Increased Focus on Data
Project management and data go hand in hand. A project manager who successfully uses available data to gain insight into key metrics can craft a targeted strategy to Strengthen existing processes and further the goals of their business. Project management software can assist with both data collection and analysis, and provide concise evaluations and visualization tools for project managers to refer to in team building, productivity and time management efforts.
Emphasis on Soft Skills and Emotional Intelligence
As AI and automation take over aspects of the more technical side of project management, more emphasis is placed on the soft skills a project manager needs to effectively connect with, motivate and manage teams. These skills include emotional intelligence, communication, conflict resolution, mentoring and training, adaptability, time and risk management, leadership, team building and decision making.
Wed, 30 Nov 2022 00:00:00 -0600Chauncey Crailen-UStext/htmlhttps://www.forbes.com/advisor/business/2023-project-management-trends/Killexams : With jobs no longer secure, career cushioning is taking centre stage
Closing in on his 40s, business development and sales professional Jignasu Panchal is taking an Advanced Excel, Power Business Intelligence and SQL masterclass via Skill Nation, an online platform that offers modern-age job skills. Panchal, 38, who has a bachelor’s degree in electronics engineering and an MBA in finance, says he is making himself “future ready”.
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Wed, 07 Dec 2022 22:10:00 -0600entext/htmlhttps://www.business-standard.com/article/economy-policy/with-jobs-no-longer-secure-career-cushioning-is-taking-centre-stage-122120801030_1.htmlKillexams : PMI Hosts Largest Community of Project Professionals at PMI® Global Summit 2022
PHILADELPHIA--(BUSINESS WIRE)--Dec 5, 2022--
Project Management Institute (PMI) held PMI Global Summit 2022, its largest annual gathering of project, program, and portfolio professionals at Caesar’s Palace in Las Vegas from 1-3 December. The event included opening keynote remarks from Futurist and Best-Selling Author Amy Webb and closing keynote remarks from Innovator and CEO of Uncharted Jessica O. Matthews.
The three-day conference brought together 3,500 project leaders in person, and more than 3,000 virtual attendees to learn from key players in the industry and earn PDUs and gain valuable knowledge as they network with individuals across the profession. During the event, more than 140 subject matter experts and speakers held various educational sessions on subjects ranging from strategic alignment to agility and transformation. PMI also held a newly revitalized awards celebration, themed “ILLUMINATE!”, honoring Ideas and Outstanding Teamwork.
“Global Summit provides a unique opportunity for our community to gather and share ideas, grow their networks, and celebrate their successes,” said Pierre Le Manh, President and Chief Executive Officer of Project Management Institute. “As this year’s event comes to a close, we’re energized by our community’s passion and excited to continue being a trusted resource and home for project professionals across the globe.”
At the event, leaders discussed the latest PMI® Pulse of the Profession® report, a report created from a premier annual global survey of project professionals, launched earlier this week. The survey found that organizations that prioritize power skills – including communication, problem-solving, collaborative leadership, and strategic thinking – perform better against multiple key drivers of success.
As another way to bring the Global Summit programming to our community, on 1 December, PMI held the final installment of the award-winning Virtual Experience Series 2022, featuring educational sessions livestreamed from PMI Global Summit, including our opening keynote Amy Webb, and an abundance of great content and exhibits. Don’t miss out on this opportunity to learn, network, and earn 9+ PDUs. On-demand access will be available through 31 January 2023. Learn more here.
Registration for PMI ® Global Summit 2023 will open in early 2023.
About Project Management Institute (PMI)
Project Management Institute (PMI) is the leading professional organization for project management, and the authority for a growing global community of millions of project professionals and individuals who use project management skills. Collectively, these professionals and "changemakers" consistently create better outcomes for businesses, community, and society worldwide.
PMI empowers people to make ideas a reality. Through global advocacy, networking, collaboration, research, and education, PMI prepares organizations and individuals at every stage of their career journey to work smarter so they can drive success in a world of change.
Building on a proud legacy dating to 1969, PMI is a not-for-profit, for-purpose organization working in nearly every country around the world to advance careers, strengthen organizational success, and enable project professionals and changemakers with new skills and ways of working to maximize their impact. PMI offerings include globally recognized standards, certifications, online courses, thought leadership, tools, digital publications, and communities.
Mon, 05 Dec 2022 02:20:00 -0600entext/htmlhttps://www.joplinglobe.com/region/national_business/pmi-hosts-largest-community-of-project-professionals-at-pmi-global-summit-2022/article_0e1b6249-1e83-55a8-b368-a621da71107d.htmlKillexams : PMI launches diversity and inclusion certificate training
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Thu, 08 Dec 2022 13:44:00 -0600entext/htmlhttps://www.professionalpensions.com/news/4061418/pmi-launches-diversity-inclusion-certificate-trainingKillexams : PMI Kerala chapter wins global recognition
Project Management Institute (PMI) Kerala Chapter has been awarded for its outstanding contribution to professional and community engagements as the winner of the Global Best Chapter Award at the PMI Global Summit held at Las Vegas, USA.
The PMI Chapter Awards program provides recognition of volunteer efforts and acknowledgement of their contributions towards achieving the objectives of project management impact through professionalism, volunteering, and social support initiatives.
PMI Kerala Chapter has been serving the project management community for the past 19 years.
PMI Kerala has won the global award in recognition of its flagship programs like organic farming, introducing project management concepts to school students and college student forums under the Academic Outreach initiative, empowering women leadership, cross-continent professional development events, and assistance to Government organisations in developing project management practices, said Jayakishore S.R, President, PMI Kerala Chapter.
Mon, 05 Dec 2022 23:00:00 -0600entext/htmlhttps://www.thehindubusinessline.com/news/pmi-kerala-chapter-wins-global-recognition/article66230074.eceKillexams : Project Management Institute Celebrates Contributions to Project Management Industry with Winners of 2022 PMI® Awards
PHILADELPHIA--(BUSINESS WIRE)--Dec 2, 2022--
Project Management Institute (PMI), the world’s leading organization for the project management profession, announced the winners of the 2022 PMI® Awards during a reimagined award ceremony, themed as ILLUMINATE!, at PMI Global Summit. The PMI® Awards highlight project professionals, PMI chapters, groups and published works that advance the project management profession.
Since 1974, PMI has honored organizations and project professionals whose passion, talent, and expertise have made the greatest contributions to project management and PMI. This year’s awards fall under three categories: PMI Project Awards, PMI Research and Academic Awards, and PMI Chapter Awards.
“As the home for project professionals across the globe, PMI celebrates the work that leads us forward–and those who make it possible,” said Pierre Le Manh, President and Chief Executive Officer of Project Management Institute. “Through innovation, collaboration, and a dedication to outcomes that matter, this year’s recognized work and project leaders model the qualities that drive the world forward—directing us all towards a brighter future.”
PMI® Awards:
PMI® Project of the Year Award – This award is the highest project honor and recognizes a single project leading the way in the project management profession. Projects winning this award have achieved excellence of project management practices including superior organizational results, innovation, collaboration, and making positive impacts on society.
PMI® Large and Mega Project Award – This award recognizes complex projects that best deliver superior performance of project management practices, superior organizational results, and positive impacts on society with a project budget of more than US$50 million.
Winner: Route 2020 Project by Dubai Metro
Finalist: Al Madinah Mega Project by King Faisal Specialist Hospital & Research Center
Finalist: Sanmen AP1000 Phase I Project by the Shanghai Nuclear Engineering Research & Design Institute
PMI® Small and Mid-Size Project Award – This award recognizes complex projects that best deliver superior performance of project management practices, superior organizational results, and positive impacts on society with a project budget of less than US$50 million.
Winner: Medical Oxygen Plant (MOP) by Tata Advanced Systems Limited (TASL)
Finalist: COVID-19 300 ICU Hospital Beds by GDID Jubilee
Finalist: Multiplan Advocacy Platform Implementation by UST
PMO of the Year® Award – This award honors a Project Management Office (PMO) that has added value to its organization through its support of successful strategic initiatives and demonstrated superior organizational project management capabilities. It also recognizes a PMO that has established a vision for value delivery and has had a positive and clear impact on business results.
Finalist: Ontario Power Generation Enterprise Project Management Office
Finalist: Johnson & Johnson FS&T Project Management Office
PMI® Fellow Award – This is the highest and most prestigious individual award, honoring professionals for their service to the organization and profession.
PMI® Eric Jenett Person of the Year Award – This award recognizes and honors an individual who has made an outstanding contribution(s) to the project management profession or its practice through leadership, technical project management, and strategic and business management acumen.
Imre Szalay
Shivani Gupta
PMI® Rising Leader Award – This award recognizes and honors young professionals who have made a significant impact in advancing project management within an organization; advancing the knowledge and understanding of the practice of project management; and demonstrating an understanding of PMI standards, practices, and ethics.
Syed Ahsan Mustaqeem PE, PMP
Tu Dang Khoa
Taras Fedoruk
Innocentia Mahlangu
Samuel Michael Clark
PMI® Research and Academic Awards
The PMI Research and Academic Awards recognize individuals, groups, and published works that significantly advanced the concepts, knowledge, and practices of project, program, and portfolio management.
PMI® David I. Cleland Project Management Literature Award – The PMI David I. Cleland Project Management Literature Award recognizes the author(s) of a published book that significantly advances project management knowledge, concepts, and practice.
Winner: Antonio Nieto-Rodriguez for The Harvard Business Review Project Management Handbook
PMI® Research Achievement Award – The PMI Research Achievement Award recognizes and honors an individual whose work has significantly advanced the concepts, knowledge, and practices of project management through a published body of academic research.
Winners:
Professor Nathalie Drouin, University of Quebec, Montreal
Professor Ralf Müller, BI Norwegian Business School
Professor Shankar Sankaran, University of Technology Sydney
PMI® Linn Stuckenbruck Teaching Excellence Award – The PMI Linn Stuckenbruck Teaching Excellence Award honors faculty members for excellence in teaching project management curricula in higher education.
Winner: Dr. Scott W. Kramer, Auburn University
PMI® Young Researcher Award – The PMI Young Researcher Award recognizes and celebrates emerging leaders in the academic field of project, program, and/or portfolio management with potential achievements to make a significant impact on the field and practice.
Winner: Dr. Johan Ninan, Delft University of Technology
PMI® Chapter Awards
The PMI Chapter Awards program provides recognition of volunteer efforts, motivates chapter leaders, and provides acknowledgment of their contributions toward achieving goals.
Category I - Chapters with 25-300 Members
Winner: PMI Gujarat, India Chapter - South Asia
Finalists:
PMI Columbus, Georgia Chapter - North America
PMI Kazakhstan Chapter- Europe
PMI Pernambuco, Brazil Chapter- Latin America
PMI Taipei, Taiwan Chapter- Asia Pacific
PMI Tunisia Chapter- Middle East/North Africa
PMI Zimbabwe Chapter- Sub-Saharan Africa
Category II - Chapters with 301–1,500 Members
Winner: PMI Trivandrum, Kerala Chapter- South Asia
Finalists:
PMI Durham Highlands Chapter- North America
PMI Kenya Chapter- Sub-Saharan Africa
PMI Lebanon Chapter- Middle East/North Africa
PMI Queensland Australia Chapter- Asia Pacific
PMI Rio Grande do Sul, Brazil Chapter- Latin America
PMI Southern Italy Chapter- Europe
Category III - Chapters with Over 1,500 Members
Winner: PMI Chicagoland Chapter- North America
Finalist: PMI Central Italy Chapter- Europe
If you know a project, PMO, or professional in project management that deserves recognition, nominate them for next year’s PMI Awards today at https://professionalawards.pmi.org/.
About Project Management Institute (PMI)
Project Management Institute (PMI) is the leading professional organization for project management, and the authority for a growing global community of millions of project professionals and individuals who use project management skills. Collectively, these professionals and "changemakers" consistently create better outcomes for businesses, community, and society worldwide.
PMI empowers people to make ideas a reality. Through global advocacy, networking, collaboration, research, and education, PMI prepares organizations and individuals at every stage of their career journey to work smarter so they can drive success in a world of change.
Building on a proud legacy dating to 1969, PMI is a not-for-profit for-purpose organization working in nearly every country around the world to advance careers, strengthen organizational success, and enable project professionals and changemakers with new skills and ways of working to maximize their impact. PMI offerings include globally recognized standards, certifications, online courses, thought leadership, tools, digital publications, and communities.
Fri, 02 Dec 2022 02:55:00 -0600entext/htmlhttps://www.joplinglobe.com/region/national_business/project-management-institute-celebrates-contributions-to-project-management-industry-with-winners-of-2022-pmi-awards/article_38ca55ef-f53f-507d-97b4-2a8b57d14dc7.htmlKillexams : Project Management Software Market Growth, COVID Impact, Trends Analysis Report from 2022 to 2032
According to the project management software market assessment by Future Market Encounters (FMI), the premium enrolled in the market will augment at a sound CAGR of 13.1% from 2022-2032.
The report communicates that the market should show up at the valuation of ~US$ 5.9 Bn close to the completion of 2022. As indicated by FMI, creating revenue for project participation by tremendous endeavors uplift the improvement of project management software market. Project management software helps project chiefs to get continuous nuances of projects, working on it for dares to screen status of projects.
The project management software moreover helps relationship with really cooperating with associates. Besides, the software definitively helps in the piece of resources for a particular work, in this way cutting down the general cost.
Ventures in North America are progressively utilizing progressed project management software to screen the advancement of any project. Subsequently, reception of project management software arrangements in the locale is reliably rising expanding. The project management software market is expected to have wonderful learning experiences for little and medium sized Ventures (SMEs).
Key Takeaways: Project Management Software Market
By solution, the project management software segment is anticipated to account for the leading share in the global demand for project management software during the forecast period. However, the services segment is estimated to grow at a robust CAGR of 10.9% through 2032.
By industry, the IT & Telecom segment is anticipated to increase at a CAGR of 14.7% between 2022 & 2032.
North America is expected to lead the market at a CAGR of around 9.5% through 2032 followed by Europe in 2022. South Asia and Pacific is anticipated to emerge as the fastest growing region between 2022 & 2032.
The market in Japan is expected to progress at a CAGR of around 15.4% through 2032.
In India, sales are expected to increase at a CAGR of close 21.0% over the next ten years.
Budget Tracking Throughout Project Lifecycle to Drive Demand
The in-built budget tracking feature enables enterprises to automatically monitor project budget through the life cycle. The right project management software is one of the better way to prevent out of control spending and overrun costs.
Budget tracking feature enable users to know exactly where work stands and how much money and time has been spent, and supports users to precisely predict the cost and timeline for the whole project. Therefore, the benefit offered by the budget tracking feature in the project management software solution is driving the market demand.
Cloud-first Approach Becoming the Standard in Project Management
Cloud-based project management software organizes the collaborating, monitoring, delivering, and planning of a project. It enables project managers and teams to get work done utilizing a network of tools obtainable within the software, rather than utilizing a traditional method.
The usage of project management software scales from business to business. But, in all, it is created to make deadlines and managing projects simpler and more effective. Online Cloud-based project management tools offer a centralized place for document sharing and communication which results in high productivity for every team member without any financial costs. All cloud-based project management software such as ProofHub is made with outstanding technologies and undergo various security measures. Thus, cloud-based project management software is reliable and secure.
Competitive Landscape
Project management software market players are focusing on various strategies for increasing their investments in research and development to support future technologies. In addition, several companies are acquiring and entering into partnerships with other companies to develop their own project management software to serve their customers and reduce the churn rate
In February 2022, Oracle announced its new product “workflow manager”, which help field service teams to deliver consistent and effective service with new workflow manager.
In January 2021, ProjectManager, a software company unveiled a redesigned mobile app to Strengthen project and work management for hybrid teams.
More Valuable Insights on Project Management Software Market
Future Market Insight’s report on the project management software research is segmented into four major sections – solutions (project management software (cloud-based and on-premises) and services (managed services and professional services), enterprise size (Small and Mid-sized Enterprises (SMEs) and large enterprises), industry (building and construction, retail, hospitality, IT and Telecom, energy and utilities, manufacturing, governments, and others), and region (North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa), to help readers understand and evaluate lucrative opportunities in the project management software outlook.
Project Management Software Outlook by Category
By Solution, Project Management Software Market is segmented as:
Project Management Software
Services
Professional Services
Consulting
Implementation & Integration
Support & Maintenance
Managed Services
By Enterprise Size, Project Management Software Market is segmented as:
Large Enterprises
Small and Mid-sized Enterprises (SMEs)
By Industry, Project Management Software Market is segmented as:
Building and Construction
Retail
Hospitality
IT & Telecom
Energy and Utilities
Manufacturing
Government
Others
By Region, Project Management Software Sales is segmented as:
Future Market Insights (ESOMAR certified market research organization and a member of Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favor the market growth in various segments on the basis of Source, Application, Sales Channel and End Use over the next 10-years.
Mon, 05 Dec 2022 17:59:00 -0600en-UStext/htmlhttps://www.fmiblog.com/2022/12/06/project-management-software-market-growth-covid-impact-trends-analysis-report-from-2022-to-2032/Killexams : Manufacturing PMI® at 49%; November 2022 Manufacturing ISM® Report On Business®
New Orders Contracting; Production Growing; Backlogs Contracting; supplier Deliveries Faster; Raw Materials Inventories Growing; Customers' Inventories Too Low; Prices Decreasing; Exports and Imports Contracting
TEMPE, Ariz., Dec. 1, 2022 /PRNewswire/ -- Economic activity in the manufacturing sector contracted inNovember for the first time since May 2020 after 29 consecutive months of growth, say the nation's supply executives in the latest Manufacturing ISM®Report On Business®.
The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee:
"The November Manufacturing PMI® registered 49 percent, 1.2 percentage points lower than the 50.2 percent recorded in October. Regarding the overall economy, this figure indicates expansion for the 30th month in a row after contraction in April and May 2020. The Manufacturing PMI® figure is the lowest since May 2020, when it registered 43.5 percent. The New Orders Index remained in contraction territory at 47.2 percent, 2 percentage points lower than the 49.2 percent recorded in October. The Production Index practicing of 51.5 percent is a 0.8-percentage point decrease compared to October's figure of 52.3 percent. The Prices Index registered 43 percent, down 3.6 percentage points compared to the October figure of 46.6 percent; this is the index's lowest practicing since May 2020 (40.8 percent). The Backlog of Orders Index registered 40 percent, 5.3 percentage points lower than the October practicing of 45.3 percent. The Employment Index returned to contraction territory (48.4 percent, down 1.6 percentage points) after being unchanged in October at 50 percent. The supplier Deliveries Index practicing of 47.2 percent is 0.4 percentage point higher than the October figure of 46.8 percent. Except for last month, the supplier Deliveries Index hasn't been at this level since February 2012 (47 percent). The Inventories Index registered 50.9 percent, 1.6 percentage points lower than the October practicing of 52.5 percent. The New Export Orders Index practicing of 48.4 percent is up 1.9 percentage points compared to October's figure of 46.5 percent. The Imports Index dropped into contraction territory at 46.6 percent, 4.2 percentage points below the October practicing of 50.8 percent."
Fiore continues, "The U.S. manufacturing sector dipped into contraction, with the Manufacturing PMI® at its lowest level since the coronavirus pandemic recovery began. With Business Survey Committee panelists reporting softening new order rates over the previous six months, the November composite index practicing reflects companies' preparing for future lower output. Demand eased, with the (1) New Orders Index remaining in contraction territory, (2) New Export Orders Index below 50 percent for a fourth consecutive month, (3) Customers' Inventories Index effectively in 'just right' territory, climbing 7.1 percentage points, and (4) Backlog of Orders Index moving deeper into contraction. Output/Consumption (measured by the Production and Employment indexes) declined month over month, with a combined negative 2.4-percentage point impact on the Manufacturing PMI® calculation. The Employment Index moved back into contraction, and the Production Index decreased but still remained in modest growth territory. Panelists' companies confirm that they are continuing to manage head counts through a combination of hiring freezes, employee attrition, and now layoffs. Inputs — defined as supplier deliveries, inventories, prices and imports — mostly accommodated future demand growth. The supplier Deliveries Index indicated faster deliveries, and the Inventories Index expanded at a slower rate as panelists' companies continued to manage the total supply chain inventory. The Prices Index decreased for the ninth consecutive month, falling deeper into contraction territory.
"Of the six biggest manufacturing industries, two — Petroleum & Coal Products; and Transportation Equipment — registered weak-to-moderate growth in November.
"Manufacturing contracted in November after expanding for 29 straight months. Panelists' companies continue to judiciously manage hiring, other than October 2022, the month-over-month supplier delivery performance was the best since February 2012 when it registered 47 percent, and material lead times declined approximately 9 percent from the prior month, approximately 18 percent over the last four months. Managing head counts and total supply chain inventories remain primary goals. Order backlogs, prices and now lead times are declining rapidly, which should bring buyers and sellers back to the table to refill order books based on 2023 business plans."
Six manufacturing industries reported growth in November, in the following order: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Primary Metals; Miscellaneous Manufacturing; Petroleum & Coal Products; and Transportation Equipment. The 12 industries reporting contraction in November, in the following order, are: Printing & Related Support Activities; Wood Products; Paper Products; Textile Mills; Fabricated Metal Products; Furniture & Related Products; Chemical Products; Plastics & Rubber Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Machinery; and Electrical Equipment, Appliances & Components.
WHAT RESPONDENTS ARE SAYING
"Customer demand is softening, yet suppliers are maintaining high prices and record profits. Pushing for cost reductions based on market evidence has been surprisingly successful." [Computer & Electronic Products]
"Future volumes are on a downward trend for the next 60 days." [Chemical Products]
"Orders for transportation equipment remain strong. Supply chain issues persist, with minimal direct effect on output." [Transportation Equipment]
"Consumer goods are slowing down in several of our markets, although the U.S. economy seems decent. Cannot say the same for the European economy." [Food, Beverage & Tobacco Products]
"General economic uncertainty has created a slowdown in orders as we approach the end of the year, and many of our key customers are reducing their capital expenditures spend." [Machinery]
"Overall, things are worsening. Housing starts are down. We're doing well against our competitors, but the industry overall is down. We're sitting on cash (that is) tied up in inventory." [Electrical Equipment, Appliances & Components]
"The market remains consistent: sales match expectations; there are concerns about the impact of rising interest rates on customers; most suppliers have recovered on labor, but some are still struggling; and inflation seems to have peaked, but commodity price decreases have not been passed through to us. Lots of unknowns regarding impact to the European Union from the Russia-Ukraine war and questions about customer behavior in 2023." [Miscellaneous Manufacturing]
"There is caution going into 2023, but the commercial section of construction seems to still be going strong." [Nonmetallic Mineral Products]
"Looking into December and the first quarter of 2023, business is softening as uncertain economic conditions lie ahead." [Plastics & Rubber Products]
"Slight improvement on overall business conditions from the previous month." [Primary Metals]
MANUFACTURING AT A GLANCE November 2022
Index
Series Index
Nov
Series Index
Oct
Percentage
Point
Change
Direction
Rate of Change
Trend* (Months)
Manufacturing PMI®
49.0
50.2
-1.2
Contracting
From Growing
1
New Orders
47.2
49.2
-2.0
Contracting
Faster
3
Production
51.5
52.3
-0.8
Growing
Slower
30
Employment
48.4
50.0
-1.6
Contracting
From Unchanged
1
Supplier Deliveries
47.2
46.8
+0.4
Faster
Slower
2
Inventories
50.9
52.5
-1.6
Growing
Slower
16
Customers' Inventories
48.7
41.6
+7.1
Too Low
Slower
74
Prices
43.0
46.6
-3.6
Decreasing
Faster
2
Backlog of Orders
40.0
45.3
-5.3
Contracting
Faster
2
New Export Orders
48.4
46.5
+1.9
Contracting
Slower
4
Imports
46.6
50.8
-4.2
Contracting
From Growing
1
OVERALL ECONOMY
Growing
Slower
30
Manufacturing Sector
Contracting
From Growing
1
Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Inventories indexes. *Number of months moving in current direction.
COMMODITIES REPORTED UP/DOWN IN PRICEAND IN SHORT SUPPLY
Commodities Up in Price Electrical Components; Electricity; Electronic Components (24); and Labor — Temporary (3).
Commodities Down in Price Aluminum (7); Copper (2); Freight; Lumber (3); Ocean Freight (3); Plastic Resins (6); Polypropylene (4); Steel (7); Steel — Carbon (5); Steel — Hot Rolled (7); and Steel Products (5).
Commodities inShort Supply Electrical Components (26); Electronic Components (24); Hydraulic Components (7); Rubber Based Products; Semiconductors (24); and Steel Products.
Note: The number of consecutive months the commodity is listed is indicated after each item.
NOVEMBER 2022 MANUFACTURING INDEX SUMMARIES
Manufacturing PMI® The U.S. manufacturing sector contracted in November, as the Manufacturing PMI® registered 49 percent, 1.2 percentage points below the practicing of 50.2 percent recorded in October. "After five months of flat or marginally positive change, the decrease last month took the Manufacturing PMI® into contraction. Of the five subindexes that directly factor into the Manufacturing PMI®, two (Production and Inventories) were in growth territory, though both eased. The PMI® registered its lowest level since May 2020, when the index was 43.5 percent. Of the six biggest manufacturing industries, two — Petroleum & Coal Products; and Transportation Equipment — registered weak-to-moderate growth in November. The Production Index decreased 0.8 percentage point, inching closer to contraction territory. Supply chain congestion continued to ease, indicated by the supplier Deliveries Index showing faster deliveries. Only two of the 10 subindexes were positive for the period," says Fiore. A practicing above 50 percent indicates that the manufacturing sector is generally expanding; below 50 percent indicates that it is generally contracting.
A Manufacturing PMI® above 48.7 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the November Manufacturing PMI® indicates the overall economy grew in November for the 30th consecutive month following contraction in April and May 2020. "The past relationship between the Manufacturing PMI® and the overall economy indicates that the Manufacturing PMI® for November (49 percent) corresponds to a 0.1-percent increase in real gross domestic product (GDP) on an annualized basis," says Fiore.
THE LAST 12 MONTHS
Month
Manufacturing PMI®
Month
Manufacturing PMI®
Nov 2022
49.0
May 2022
56.1
Oct 2022
50.2
Apr 2022
55.4
Sep 2022
50.9
Mar 2022
57.1
Aug 2022
52.8
Feb 2022
58.6
Jul 2022
52.8
Jan 2022
57.6
Jun 2022
53.0
Dec 2021
58.8
Average for 12 months – 54.4
High – 58.8
Low – 49.0
New Orders ISM®'s New Orders Index contracted for the third consecutive month in November, registering 47.2 percent, a decrease of 2 percentage points compared to the 49.2 percent reported in October. "None of the six largest manufacturing sectors reported increased new orders. Price and lead time declines as well as backlog contraction should encourage buyers to reenter the market and sales agents to be more aggressive in seeking new business," says Fiore. (For more on lead times, see the Buying Policy section of this report.) A New Orders Index above 52.9 percent, over time, is generally consistent with an increase in the Census Bureau's series on manufacturing orders (in constant 2000 dollars).
Of the 18 manufacturing industries, only one reported growth in new orders in November: Apparel, Leather & Allied Products. Fourteen industries reported a decline in new orders in November, in the following order: Wood Products; Printing & Related Support Activities; Paper Products; Primary Metals; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Machinery; Plastics & Rubber Products; Chemical Products; Transportation Equipment; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; and Computer & Electronic Products.
New Orders
%Higher
%Same
%Lower
Net
Index
Nov 2022
12.7
62.3
25.0
-12.3
47.2
Oct 2022
18.3
56.4
25.3
-7.0
49.2
Sep 2022
16.0
62.8
21.2
-5.2
47.1
Aug 2022
17.5
63.1
19.4
-1.9
51.3
Production The Production Index registered 51.5 percent in November, 0.8 percentage point lower than the October practicing of 52.3 percent, indicating growth for the 30th consecutive month. "Of the top six industries, only two — Computer & Electronic Products; and Transportation Equipment — expanded in November. Materials and labor availability continue to improve, as panelists' companies begin to significantly reduce their backlogs of overdue orders," says Fiore. An index above 52.4 percent, over time, is generally consistent with an increase in the Federal Reserve Board's Industrial Production figures.
The seven industries reporting growth in production during the month of November — listed in order — are: Apparel, Leather & Allied Products; Primary Metals; Nonmetallic Mineral Products; Computer & Electronic Products; Plastics & Rubber Products; Transportation Equipment; and Electrical Equipment, Appliances & Components. The seven industries reporting a decrease in production in November — in the following order — are: Printing & Related Support Activities; Textile Mills; Furniture & Related Products; Machinery; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; and Fabricated Metal Products.
Production
%Higher
%Same
%Lower
Net
Index
Nov 2022
20.2
61.7
18.1
+2.1
51.5
Oct 2022
20.2
62.3
17.5
+2.7
52.3
Sep 2022
17.5
64.3
18.2
-0.7
50.6
Aug 2022
17.6
65.4
17.0
+0.6
50.4
Employment ISM®'s Employment Index registered 48.4 percent in November, 1.6 percentage points lower than the October practicing of 50 percent. "The index indicated employment contracted after being unchanged for one month. Of the six big manufacturing sectors, only two (Food, Beverage & Tobacco Products; and Machinery) expanded. Labor management sentiment continued to shift, with a number of panelists' companies reducing employment levels through hiring freezes, attrition, and now layoffs. In November, layoffs were mentioned in 14 percent of employment comments, up from 6 percent in October. Turnover rates remained consistent, with 30 percent of comments citing backfill and retirement issues, generally the same rate since September. For those companies expanding their workforces, comments continue to support an improving hiring environment," says Fiore. An Employment Index above 50.5 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.
Of 18 manufacturing industries, seven reported employment growth in November, in the following order: Apparel, Leather & Allied Products; Primary Metals; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Plastics & Rubber Products; Food, Beverage & Tobacco Products; and Machinery. The five industries reporting a decrease in employment in November are: Textile Mills; Paper Products; Computer & Electronic Products; Chemical Products; and Fabricated Metal Products. Six industries reported no change in employment in November compared to October.
Employment
%Higher
%Same
%Lower
Net
Index
Nov 2022
12.8
70.6
16.6
-3.8
48.4
Oct 2022
16.0
68.9
15.1
+0.9
50.0
Sep 2022
17.5
60.3
22.2
-4.7
48.7
Aug 2022
19.3
68.3
12.4
+6.9
54.2
Supplier Deliveries† The delivery performance of suppliers to manufacturing organizations was faster for a second straight month in November, as the supplier Deliveries Index registered 47.2 percent, 0.4 percentage point higher than the 46.8 percent reported in October. Prior to October, the last practicing under 50 percent was in February 2016 (49.6 percent); this is the first time the index has spent consecutive months in "faster" territory since October-December 2015. Of the top six manufacturing industries, one (Petroleum & Coal Products) reported slower deliveries. "Although a touch slower than the previous month, the November practicing indicates the best month-over-month supplier deliveries performance in more than a decade (since February 2012, when the index registered 47 percent). In November, 86.1 percent of panelists reported 'same' or 'faster' delivery times. Panelists' comments overwhelmingly confirmed that suppliers performed better in November compared to previous months," says Fiore. A practicing below 50 percent indicates faster deliveries, while a practicing above 50 percent indicates slower deliveries.
Six of 18 manufacturing industries reported slower supplier deliveries in November, in the following order: Apparel, Leather & Allied Products; Textile Mills; Petroleum & Coal Products; Nonmetallic Mineral Products; Primary Metals; and Miscellaneous Manufacturing. The 11 industries reporting faster supplier deliveries in November as compared to October — in the following order — are: Wood Products; Electrical Equipment, Appliances & Components; Paper Products; Plastics & Rubber Products; Furniture & Related Products; Fabricated Metal Products; Chemical Products; Computer & Electronic Products; Machinery; Food, Beverage & Tobacco Products; and Transportation Equipment.
Supplier Deliveries
%Slower
%Same
%Faster
Net
Index
Nov 2022
13.9
66.5
19.6
-5.7
47.2
Oct 2022
11.7
70.2
18.1
-6.4
46.8
Sep 2022
16.8
71.2
12.0
+4.8
52.4
Aug 2022
19.6
71.0
9.4
+10.2
55.1
Inventories The Inventories Index registered 50.9 percent in November, 1.6 percentage points lower than the 52.5 percent reported for October. "Manufacturing inventories expanded at a slower rate compared to October. The index recorded its lowest level since July 2021, when it registered 49.1 percent. Of the six big manufacturing industries, four (Machinery; Computer & Electronic Products; Transportation Equipment; and Chemical Products) increased manufacturing raw material inventories in November. Panelists' companies continue their efforts to reduce their total supply chain inventories, indicated by the contraction in new orders, slow expansion in manufacturing inventories and the 'just right' level of customers' inventories," says Fiore. An Inventories Index greater than 44.4 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).
Of 18 manufacturing industries, the eight reporting higher inventories in November — in the following order — are: Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Primary Metals; Machinery; Computer & Electronic Products; Transportation Equipment; and Chemical Products. The eight industries reporting contracting inventories in November — in the following order — are: Printing & Related Support Activities; Wood Products; Textile Mills; Apparel, Leather & Allied Products; Paper Products; Fabricated Metal Products; Petroleum & Coal Products; and Plastics & Rubber Products.
Inventories
%Higher
%Same
%Lower
Net
Index
Nov 2022
20.9
58.3
20.8
+0.1
50.9
Oct 2022
21.6
63.3
15.1
+6.5
52.5
Sep 2022
23.0
64.9
12.1
+10.9
55.5
Aug 2022
23.2
62.9
13.9
+9.3
53.1
Customers' Inventories† ISM®'s Customers' Inventories Index registered 48.7 percent in November, 7.1 percentage points higher than the 41.6 percent reported for October. "Customers' inventory levels are considered essentially 'just right.' The index recorded its highest level since April 2020 (48.8 percent). The current index level is no longer providing positive support to future manufacturing expansion," says Fiore.
Six industries reported customers' inventories as too high in November, in the following order: Textile Mills; Paper Products; Wood Products; Primary Metals; Chemical Products; and Electrical Equipment, Appliances & Components. The eight industries reporting customers' inventories as too low in November — listed in order — are: Nonmetallic Mineral Products; Machinery; Petroleum & Coal Products; Miscellaneous Manufacturing; Transportation Equipment; Food, Beverage & Tobacco Products; Computer & Electronic Products; and Fabricated Metal Products.
Customers' Inventories
% Reporting
%Too High
%About Right
%Too Low
Net
Index
Nov 2022
77
20.6
56.2
23.2
-2.6
48.7
Oct 2022
74
13.4
56.3
30.3
-16.9
41.6
Sep 2022
73
13.5
56.1
30.4
-16.9
41.6
Aug 2022
75
12.2
53.4
34.4
-22.2
38.9
Prices† The ISM® Prices Index registered 43 percent in November, 3.6 percentage points lower compared to the October practicing of 46.6 percent, indicating raw materials prices decreased for the second time in 29 months. This is the index's lowest level since a practicing of 40.8 percent in May 2020. Over the past eight months, the index has decreased 44.1 percentage points, including a combined 26-percentage point plunge in July and August. None of the top six manufacturing industries reported increases in prices in November. "Price declines continue to be driven by relaxation in energy markets, copper, steel, aluminum, plastics, corrugate and as well as volatility in freight costs. Notably, 87 percent of respondents reported paying the same or lower prices in November, compared to 80 percent in October," says Fiore. A Prices Index above 52.6 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Producer Price Index for Intermediate Materials.
In November, only one industry reported paying increased prices for raw materials: Miscellaneous Manufacturing. The 10 industries reporting paying decreased prices for raw materials in November — in the following order — are: Textile Mills; Wood Products; Furniture & Related Products; Fabricated Metal Products; Plastics & Rubber Products; Transportation Equipment; Chemical Products; Electrical Equipment, Appliances & Components; Machinery; and Computer & Electronic Products. Seven industries reported no change in prices in November compared to October.
Prices
%Higher
%Same
%Lower
Net
Index
Nov 2022
13.1
59.8
27.1
-14.0
43.0
Oct 2022
19.7
53.8
26.5
-6.8
46.6
Sep 2022
31.4
40.5
28.1
+3.3
51.7
Aug 2022
31.7
41.6
26.7
+5.0
52.5
Backlog of Orders† ISM®'s Backlog of Orders Index registered 40 percent in November, a 5.3-percentage point decrease compared to October's practicing of 45.3 percent, indicating order backlogs contracted for the second consecutive month after a 27-month period of expansion. Of the six largest manufacturing sectors, only one — Machinery — expanded order backlogs in November. "Backlogs contracted again in November at a notable rate, as weak new order levels combined with production expansion negatively impacted manufacturing books of business," says Fiore. "The index recorded its lowest level since May 2020, when it registered 38.2 percent."
Two industries reported growth in order backlogs in November: Apparel, Leather & Allied Products; and Machinery. Twelve industries reported lower backlogs in November, in the following order: Wood Products; Textile Mills; Printing & Related Support Activities; Paper Products; Primary Metals; Furniture & Related Products; Chemical Products; Plastics & Rubber Products; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Transportation Equipment; and Fabricated Metal Products.
Backlog of Orders
% Reporting
%Higher
%Same
%Lower
Net
Index
Nov 2022
91
13.7
52.6
33.7
-20.0
40.0
Oct 2022
93
17.4
55.8
26.8
-9.4
45.3
Sep 2022
90
25.5
50.8
23.7
+1.8
50.9
Aug 2022
93
24.6
56.7
18.7
+5.9
53.0
New Export Orders† ISM®'s New Export Orders Index registered 48.4 percent in November, 1.9 percentage points higher than the October practicing of 46.5 percent. "The New Export Orders Index contracted in November for the fourth consecutive month after 25 straight months in expansion territory. Weakness in European economies and China's economic sluggishness, as well as the strong dollar, continued to constrain new export order activity and negatively impact new order rates," says Fiore.
Three industries reported growth in new export orders in November: Nonmetallic Mineral Products; Plastics & Rubber Products; and Food, Beverage & Tobacco Products. The four industries reporting a decrease in new export orders in November are: Fabricated Metal Products; Chemical Products; Machinery; and Computer & Electronic Products. Ten industries reported no change in new export orders in November compared to October.
New Export Orders
% Reporting
%Higher
%Same
%Lower
Net
Index
Nov 2022
72
11.2
74.4
14.4
-3.2
48.4
Oct 2022
73
6.7
79.5
13.8
-7.1
46.5
Sep 2022
72
9.4
76.7
13.9
-4.5
47.8
Aug 2022
75
9.9
79.0
11.1
-1.2
49.4
Imports† ISM®'s Imports Index registered 46.6 percent in November, a decrease of 4.2 percentage points compared to October's figure of 50.8 percent. "The index moved into contraction in November after five months of expansion, dropping to its lowest level since May 2020 (41.3 percent)," says Fiore.
The four industries reporting growth in imports in November are: Apparel, Leather & Allied Products; Computer & Electronic Products; Miscellaneous Manufacturing; and Transportation Equipment. Nine industries reported lower volumes of imports in November, in the following order: Wood Products; Paper Products; Petroleum & Coal Products; Nonmetallic Mineral Products; Chemical Products; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Machinery; and Food, Beverage & Tobacco Products.
Imports
% Reporting
%Higher
%Same
%Lower
Net
Index
Nov 2022
84
10.2
72.8
17.0
-6.8
46.6
Oct 2022
84
9.3
82.9
7.8
+1.5
50.8
Sep 2022
83
15.2
74.8
10.0
+5.2
52.6
Aug 2022
83
15.6
73.8
10.6
+5.0
52.5
†The supplier Deliveries, Customers' Inventories, Prices, Backlog of Orders, New Export Orders, and Imports indexes do not meet the accepted criteria for seasonal adjustments.
Buying Policy The average commitment lead time for Capital Expenditures in November was 177 days, a decrease of two days compared to October. Average lead time in November for Production Materials was 84 days, a decrease of nine days. Average lead time for Maintenance, Repair and Operating (MRO) Supplies was 44 days, a decrease of four days.
Percent Reporting
Capital Expenditures
Hand-to- Mouth
30 Days
60 Days
90 Days
6 Months
1 Year+
Average Days
Nov 2022
16
4
8
11
33
28
177
Oct 2022
16
6
6
12
30
30
179
Sep 2022
16
5
7
11
32
29
178
Aug 2022
18
5
6
11
29
31
180
Percent Reporting
Production Materials
Hand-to- Mouth
30 Days
60 Days
90 Days
6 Months
1 Year+
Average Days
Nov 2022
8
23
25
27
13
4
84
Oct 2022
8
21
26
25
13
7
93
Sep 2022
9
24
24
22
13
8
94
Aug 2022
7
22
24
25
15
7
96
Percent Reporting
MRO Supplies
Hand-to- Mouth
30 Days
60 Days
90 Days
6 Months
1 Year+
Average Days
Nov 2022
30
34
17
15
3
1
44
Oct 2022
27
36
16
15
5
1
48
Sep 2022
26
35
19
15
4
1
48
Aug 2022
26
34
21
14
5
0
46
AboutThis Report DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report's information reflects the entire U.S., while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of November 2022.
The data presented herein is obtained from a survey of manufacturing supply executives based on information they have collected within their respective organizations. ISM® makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making.
Data and Method of Presentation The Manufacturing ISM®Report On Business® is based on data compiled from purchasing and supply executives nationwide. The composition of the Manufacturing Business Survey Committee is stratified according to the North American Industry Classification System (NAICS) and each of the following NAICS-based industry's contribution to gross domestic product (GDP): Food, Beverage & Tobacco Products; Textile Mills; Apparel, Leather & Allied Products; Wood Products; Paper Products; Printing & Related Support Activities; Petroleum & Coal Products; Chemical Products; Plastics & Rubber Products; Nonmetallic Mineral Products; Primary Metals; Fabricated Metal Products; Machinery; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Furniture & Related Products; and Miscellaneous Manufacturing (products such as medical equipment and supplies, jewelry, sporting goods, toys and office supplies). The data are weighted based on each industry's contribution to GDP. According to the BEA estimates for 2020 GDP (released December 22, 2021), the six largest manufacturing subsectors are: Computer & Electronic Products; Chemical Products; Transportation Equipment; Petroleum & Coal Products; Food, Beverage & Tobacco Products; and Machinery. Beginning in February 2018 with January 2018 data, computation of the indexes is accomplished utilizing unrounded numbers.
Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (New Orders, Backlog of Orders, New Export Orders, Imports, Production, supplier Deliveries, Inventories, Customers' Inventories, Employment and Prices), this report shows the percentage reporting each response, the net difference between the number of responses in the positive economic direction (higher, better and slower for supplier Deliveries) and the negative economic direction (lower, worse and faster for supplier Deliveries), and the diffusion index. Responses are raw data and are never changed. The diffusion index includes the percent of positive responses plus one-half of those responding the same (considered positive).
The resulting single index number for those meeting the criteria for seasonal adjustments (Manufacturing PMI®, New Orders, Production, Employment and Inventories) is then seasonally adjusted to allow for the effects of repetitive intra-year variations resulting primarily from normal differences in weather conditions, various institutional arrangements, and differences attributable to non-moveable holidays. All seasonal adjustment factors are subject annually to relatively minor changes when conditions warrant them. The Manufacturing PMI® is a composite index based on the diffusion indexes of five of the indexes with equal weights: New Orders (seasonally adjusted), Production (seasonally adjusted), Employment (seasonally adjusted), supplier Deliveries, and Inventories (seasonally adjusted).
Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. A Manufacturing PMI® reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally declining. A Manufacturing PMI® above 48.7 percent, over a period of time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 48.7 percent, it is generally declining. The distance from 50 percent or 48.7 percent is indicative of the extent of the expansion or decline. With some of the indicators within this report, ISM® has indicated the departure point between expansion and decline of comparable government series, as determined by regression analysis. The Manufacturing ISM®Report On Business® survey is sent out to Manufacturing Business Survey Committee respondents the first part of each month. Respondents are asked to report on information for the current month for U.S. operations only. ISM® receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses to provide the most accurate picture of current business activity. ISM® then compiles the report for release on the first business day of the following month.
The industries reporting growth, as indicated in the ManufacturingISM®Report On Business® monthly report, are listed in the order of most growth to least growth. For the industries reporting contraction or decreases, those are listed in the order of the highest level of contraction/decrease to the least level of contraction/decrease.
Responses to Buying Policy reflect the percent reporting the current month's lead time, the approximate weighted number of days ahead for which commitments are made for Capital Expenditures; Production Materials; and Maintenance, Repair and Operating (MRO) Supplies, expressed as hand-to-mouth (five days), 30 days, 60 days, 90 days, six months (180 days), a year or more (360 days), and the weighted average number of days. These responses are raw data, never revised, and not seasonally adjusted.
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Thu, 01 Dec 2022 01:03:00 -0600en-UStext/htmlhttps://finance.yahoo.com/news/manufacturing-pmi-49-november-2022-150000642.htmlKillexams : Services PMI® at 56.5%; November 2022 Services ISM® Report On Business®
Business Activity Index at 64.7%; New Orders Index at 56%; Employment Index at 51.5%; supplier Deliveries Index at 53.8%
TEMPE, Ariz., Dec. 5, 2022 /PRNewswire/ -- Economic activity in the services sectorgrew in November for the 30th month in a row — with the Services PMI® registering 56.5 percent — say the nation's purchasing and supply executives in the latest Services ISM®Report On Business®.
The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management® (ISM®) Services Business Survey Committee: "In November, the Services PMI® registered 56.5 percent, 2.1 percentage points higher than October's practicing of 54.4 percent. The Business Activity Index registered 64.7 percent, a substantial increase of 9 percentage points compared to the practicing of 55.7 percent in October. The New Orders Index figure of 56 percent is 0.5 percentage point lower than the October practicing of 56.5 percent.
"The supplier Deliveries Index registered 53.8 percent, 2.4 percentage points lower than the 56.2 percent reported in October. (Supplier Deliveries is the only ISM®Report On Business® index that is inversed; a practicing of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.)
"The Prices Index was down 0.7 percentage point in November, to 70 percent. Services businesses still continue to struggle to replenish their stocks, as the Inventories Index contracted for the sixth consecutive month; the practicing of 47.9 percent is up 0.7 percentage point from October's figure of 47.2 percent. The Inventory Sentiment Index (44.2 percent, down 2.2 percentage points from October's practicing of 46.4 percent) contracted for the fourth month in a row.
"According to the Services PMI®, 13 industries reported growth. The composite index indicated growth for the 30th consecutive month after a two-month contraction in April and May 2020. Growth continues at a faster rate for the services sector, which has expanded for all but two of the last 154 months. The sector had an uptick in growth after pulling back in the previous two months. The rate of growth increased in November due to increases in business activity and employment."
Nieves continues, "Supplier deliveries continued to slow, albeit at a slower rate in November. Based on comments from Business Survey Committee respondents, increased capacity and shorter lead times have resulted in a continued improvement in supply chain and logistics performance. A new fiscal period and the holiday season have contributed to stronger business activity and increased employment."
INDUSTRY PERFORMANCE The 13 services industries reporting growth in November — listed in order — are: Real Estate, Rental & Leasing; Mining; Agriculture, Forestry, Fishing & Hunting; Other Services; Construction; Health Care & Social Assistance; Public Administration; Retail Trade; Professional, Scientific & Technical Services; Accommodation & Food Services; Utilities; Transportation & Warehousing; and Educational Services. The three industries reporting a decrease in the month of November are: Management of Companies & Support Services; Wholesale Trade; and Information.
WHAT RESPONDENTS ARE SAYING
"Business is doing well, almost back to pre-coronavirus pandemic volumes." [Agriculture, Forestry, Fishing & Hunting]
"Generally unchanged month over month. New business requests are solid, with costs rising steadily for materials, meals and lodging." [Construction]
"Still long lead times for service-related needs. A slight downturn in fuel costs in this region, but we are still experiencing supply chain shortages and delays." [Educational Services]
"The labor forecast has improved, which has led to our ability to increase caseload, translating to higher surgical volumes. Some medical/surgical goods categories remain constrained — Vacutainer (blood collection tubes), wound care kits, syringes, hypodermic needles — but seeing modest improvement in other categories. Despite the uptick in RSV (respiratory syncytial virus) and flu, we anticipate that business activity will remain strong through the end of 2022." [Health Care & Social Assistance]
"The demand for energy services remains very strong for the foreseeable future." [Mining]
"No change from previous months — strong RFQ activity from our customers, but we're struggling to get electronic materials. Suppliers are still holding to lead times between eight and 12 months for simple components. We don't see this improving in 2023." [Other Services]
"Job openings are seemingly continuing to decrease, but with demand for top talent still high and availability still rather scarce, the opportunity for growth is still there." [Professional, Scientific & Technical Services]
"Overall business is stable. Employment is low and inflation is lower than last month. Supply chain issues are stabilizing." [Retail Trade]
"Still struggling with recruitment, though we are starting to see more (higher quality) applicants, and (we are) hopeful the situation will quantitatively change in the first quarter of 2023. There are still struggles with longer-than-usual lead times affecting monthly delivery schedules." [Transportation & Warehousing]
"Local, regional and national supply constraints continue to create supply chain complexities and challenges." [Utilities]
"Business volume appears to be leveling out based on a month-over-month comparison, although we are up significantly when compared to the same month last year." [Wholesale Trade]
ISM® SERVICES SURVEY RESULTS AT A GLANCE
COMPARISON OF ISM® SERVICES AND ISM® MANUFACTURING SURVEYS
NOVEMBER 2022
Index
Services PMI®
Manufacturing PMI®
Series Index
Nov
Series Index
Oct
Percent Point Change
Direction
Rate of Change
Trend*
(Months)
Series Index
Nov
Series Index
Oct
Percent Point Change
Services PMI®
56.5
54.4
+2.1
Growing
Faster
30
49.0
50.2
-1.2
Business Activity/
Production
64.7
55.7
+9.0
Growing
Faster
30
51.5
52.3
-0.8
New Orders
56.0
56.5
-0.5
Growing
Slower
30
47.2
49.2
-2.0
Employment
51.5
49.1
+2.4
Growing
From Contracting
1
48.4
50.0
-1.6
Supplier Deliveries
53.8
56.2
-2.4
Slowing
Slower
42
47.2
46.8
+0.4
Inventories
47.9
47.2
+0.7
Contracting
Slower
6
50.9
52.5
-1.6
Prices
70.0
70.7
-0.7
Increasing
Slower
66
43.0
46.6
-3.6
Backlog of Orders
51.8
52.2
-0.4
Growing
Slower
23
40.0
45.3
-5.3
New Export Orders
38.4
47.7
-9.3
Contracting
Faster
2
48.4
46.5
+1.9
Imports
59.5
50.4
+9.1
Growing
Faster
3
46.6
50.8
-4.2
Inventory Sentiment
44.2
46.4
-2.2
Too Low
Faster
4
N/A
N/A
N/A
Customers' Inventories
N/A
N/A
N/A
N/A
N/A
N/A
48.7
41.6
+7.1
OVERALL ECONOMY
Growing
Faster
30
Services Sector
Growing
Faster
30
ServicesISM®Report On Business® data is seasonally adjusted for the Business Activity, New Orders, Employment and Prices indexes. Manufacturing ISM®Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Inventories indexes. *Number of months moving in current direction.
COMMODITIES REPORTED UP/DOWN IN PRICE, AND IN SHORT SUPPLY
Commodities Up in Price Batteries; Construction Services; Diesel Fuel (2); Electrical Components (22); Fuel* (2); Gasoline* (2); Janitorial Maintenance Supplies; Labor (24); Labor — Full-Time; Labor — Technology and Web Related; Needles and Syringes; Pallets; and Services.
Commodities Down in Price Fuel* (4); Gasoline* (4); and Steel Products.
Commodities in Short Supply Chemicals; Concrete (2); Electronic Components; Janitorial Supplies; Labor; Plastic Products; Semiconductors (2); Transformers (3); and Vehicles (5).
Note: The number of consecutive months the commodity is listed is indicated after each item. *Indicates both up and down in price.
NOVEMBER 2022 SERVICES INDEX SUMMARIES
Services PMI®
In November, the Services PMI® registered 56.5 percent, a 2.1-percentage point increase compared to the October practicing of 54.4 percent. The 12-month average is 57.2 percent, reflecting consistently strong growth in the services sector, which has expanded for 30 consecutive months. A practicing above 50 percent indicates the services sector economy is generally expanding; below 50 percent indicates it is generally contracting.
A Services PMI® above 50.1 percent, over time, generally indicates an expansion of the overall economy. Therefore, the November Services PMI® indicates the overall economy has followed the same path as the services sector: expansion for 30 straight months following two months of contraction and a preceding period of 122 months of growth. Nieves says, "The past relationship between the Services PMI® and the overall economy indicates that the Services PMI® for November (56.5 percent) corresponds to a 2.3-percent increase in real gross domestic product (GDP) on an annualized basis."
SERVICES PMI®HISTORY
Month
Services PMI®
Month
Services PMI®
Nov 2022
56.5
May 2022
55.9
Oct 2022
54.4
Apr 2022
57.1
Sep 2022
56.7
Mar 2022
58.3
Aug 2022
56.9
Feb 2022
56.5
Jul 2022
56.7
Jan 2022
59.9
Jun 2022
55.3
Dec 2021
62.3
Average for 12 months – 57.2
High – 62.3
Low – 54.4
Business Activity
ISM®'s Business Activity Index registered 64.7 percent in November, a notable increase of 9 percentage points from the practicing of 55.7 percent in October, indicating growth for the 30th consecutive month. Comments from respondents include: "Gaining more business" and "Demand for our services is increasing."
The 13 industries reporting an increase in business activity for the month of November — listed in order — are: Real Estate, Rental & Leasing; Accommodation & Food Services; Mining; Other Services; Public Administration; Construction; Agriculture, Forestry, Fishing & Hunting; Health Care & Social Assistance; Information; Professional, Scientific & Technical Services; Retail Trade; Transportation & Warehousing; and Wholesale Trade. The one industry reporting a decrease in business activity for the month of November is Finance & Insurance.
Business Activity
%Higher
%Same
%Lower
Index
Nov 2022
33.4
56.9
9.7
64.7
Oct 2022
28.8
53.0
18.2
55.7
Sep 2022
32.5
56.7
10.8
59.1
Aug 2022
27.6
59.7
12.7
60.9
New Orders
ISM®'s New Orders Index registered 56 percent, down 0.5 percentage point from the October practicing of 56.5 percent. New orders grew for the 30th consecutive month after two months of contraction and a preceding period of 128 months of expansion. Comments from respondents include: "New customers added as our business continues to grow" and "Starting new fiscal year; ramping up projects."
Twelve industries reported growth of new orders in November, in the following order: Real Estate, Rental & Leasing; Other Services; Retail Trade; Accommodation & Food Services; Agriculture, Forestry, Fishing & Hunting; Mining; Public Administration; Transportation & Warehousing; Health Care & Social Assistance; Construction; Professional, Scientific & Technical Services; and Utilities. The four industries reporting a decrease in new orders in November are: Management of Companies & Support Services; Wholesale Trade; Information; and Educational Services.
New Orders
%Higher
%Same
%Lower
Index
Nov 2022
30.4
49.6
20.0
56.0
Oct 2022
29.3
52.1
18.6
56.5
Sep 2022
36.8
52.4
10.8
60.6
Aug 2022
30.1
55.7
14.2
61.8
Employment
Employment activity in the services sector grew in November after contracting in October. ISM®'s Employment Index registered 51.5 percent, up 2.4 percentage points from the October practicing of 49.1 percent. Comments from respondents include: "Slow improvement in staffing levels" and "Recruitment fairs have helped enable open positions to be filled."
The nine industries reporting an increase in employment in November — listed in order — are: Mining; Retail Trade; Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; Construction; Public Administration; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Utilities. The six industries reporting a decrease in employment in November — listed in order — are: Management of Companies & Support Services; Transportation & Warehousing; Accommodation & Food Services; Information; Educational Services; and Finance & Insurance.
Employment
%Higher
%Same
%Lower
Index
Nov 2022
21.3
57.9
20.8
51.5
Oct 2022
21.3
54.2
24.5
49.1
Sep 2022
23.7
58.4
17.9
53.0
Aug 2022
20.4
57.2
22.4
50.2
Supplier Deliveries
The supplier Deliveries Index registered 53.8 percent, down 2.4 percentage points from the 56.2 percent recorded in October. A practicing above 50 percent indicates slower deliveries, while a practicing below 50 percent indicates faster deliveries. Comments from respondents include: "Supply chain issues easing" and "Reduced production times and transit times."
The nine industries reporting slower deliveries in November — listed in order — are: Real Estate, Rental & Leasing; Mining; Health Care & Social Assistance; Construction; Finance & Insurance; Educational Services; Other Services; Transportation & Warehousing; and Utilities. The six industries reporting faster supplier deliveries for the month of November — listed in order — are: Wholesale Trade; Retail Trade; Arts, Entertainment & Recreation; Accommodation & Food Services; Information; and Professional, Scientific & Technical Services.
Supplier Deliveries
%Slower
%Same
%Faster
Index
Nov 2022
17.8
71.9
10.3
53.8
Oct 2022
18.8
74.8
6.4
56.2
Sep 2022
18.1
71.6
10.3
53.9
Aug 2022
20.6
67.8
11.6
54.5
Inventories
The Inventories Index contracted in November for the sixth consecutive month after four straight months of growth preceded by an eight-month period of contraction. The practicing of 47.9 percent was a 0.7-percentage point increase from the 47.2 percent reported in October. Of the total respondents in November, 34 percent indicated they do not have inventories or do not measure them. Comments from respondents include: "Trying to unload back stock purchased during supplier shortage period" and "Supply chain is improving; production and services are up." Also: "No need to stock up more than needed, as inventory is being used faster than expected."
The nine industries reporting an increase in inventories in November — listed in order — are: Arts, Entertainment & Recreation; Public Administration; Agriculture, Forestry, Fishing & Hunting; Utilities; Information; Wholesale Trade; Educational Services; Health Care & Social Assistance; and Professional, Scientific & Technical Services. The six industries reporting a decrease in inventories in November — listed in order — are: Accommodation & Food Services; Real Estate, Rental & Leasing; Management of Companies & Support Services; Mining; Retail Trade; and Construction.
Inventories
%Higher
%Same
%Lower
Index
Nov 2022
17.2
61.4
21.4
47.9
Oct 2022
17.3
59.8
22.9
47.2
Sep 2022
14.2
59.8
26.0
44.1
Aug 2022
13.9
64.5
21.6
46.2
Prices
Prices paid by services organizations for materials and services increased in November for the 66th consecutive month, with the index registering 70 percent, 0.7 percentage point lower than the 70.7 percent recorded in October. The Prices Index continues to indicate movement toward equilibrium, with a fifth consecutive practicing near or below 70 percent, following nine straight months of readings above 80 percent.
Sixteen services industries reported an increase in prices paid during the month of November, in the following order: Accommodation & Food Services; Real Estate, Rental & Leasing; Health Care & Social Assistance; Management of Companies & Support Services; Public Administration; Educational Services; Utilities; Information; Agriculture, Forestry, Fishing & Hunting; Other Services; Professional, Scientific & Technical Services; Arts, Entertainment & Recreation; Mining; Retail Trade; Transportation & Warehousing; and Finance & Insurance. The two industries reporting prices unchanged in the month of November are: Wholesale Trade; and Construction. No industry reported a decrease in prices for November.
Prices
%Higher
%Same
%Lower
Index
Nov 2022
42.7
50.7
6.6
70.0
Oct 2022
47.5
45.6
6.9
70.7
Sep 2022
42.6
51.2
6.2
68.7
Aug 2022
49.3
42.6
8.1
71.5
NOTE: Commodities reported as up in price and down in price are listed in the commodities section of this report.
Backlog of Orders
The ISM® Services Backlog of Orders Index grew in November for the 23rd consecutive month. The index registered 51.8 percent, 0.4 percentage point lower than the October practicing of 52.2 percent. Of the total respondents in November, 32 percent indicated they do not measure backlog of orders. Respondent comments include: "Supply chain transportation improvements" and "Slightly more capacity in the supply chain."
The eight industries reporting an increase in order backlogs in November — listed in order — are: Accommodation & Food Services; Real Estate, Rental & Leasing; Information; Other Services; Educational Services; Health Care & Social Assistance; Construction; and Professional, Scientific & Technical Services. The five industries reporting a decrease in order backlogs in November are: Management of Companies & Support Services; Finance & Insurance; Public Administration; Wholesale Trade; and Utilities.
Backlog of Orders
%Higher
%Same
%Lower
Index
Nov 2022
19.4
64.7
15.9
51.8
Oct 2022
25.2
53.9
20.9
52.2
Sep 2022
23.2
58.5
18.3
52.5
Aug 2022
21.7
64.5
13.8
53.9
New Export Orders
Orders and requests for services and other non-manufacturing activities to be provided outside of the U.S. by domestically based companies contracted in November for the second consecutive month after an eight-month period of growth. The New Export Orders Index registered 38.4 percent, its lowest practicing since April 2020 (36.3 percent) and a 9.3-percentage point decrease from the 47.7 percent reported in October. Of the total respondents in November, 78 percent indicated they do not perform, or do not separately measure, orders for work outside of the U.S.
The three industries reporting an increase in new export orders in November are: Mining; Utilities; and Wholesale Trade. The eight industries reporting a decrease in new export orders in November — listed in order — are: Real Estate, Rental & Leasing; Management of Companies & Support Services; Construction; Agriculture, Forestry, Fishing & Hunting; Other Services; Accommodation & Food Services; Educational Services; and Transportation & Warehousing. Seven industries indicated no change in new export orders in November.
New Export Orders
%Higher
%Same
%Lower
Index
Nov 2022
9.1
58.6
32.3
38.4
Oct 2022
15.1
65.1
19.8
47.7
Sep 2022
35.0
60.2
4.8
65.1
Aug 2022
26.5
70.9
2.6
61.9
Imports
The Imports Index grew for the third consecutive month in November after three previous months of contraction, registering 59.5 percent, up 9.1 percentage points from October's practicing of 50.4 percent. Seventy-five percent of respondents reported that they do not use, or do not track the use of, imported materials.
The six industries reporting an increase in imports for the month of November — listed in order — are: Real Estate, Rental & Leasing; Information; Retail Trade; Construction; Wholesale Trade; and Utilities. The five industries that reported a decrease in imports in November are: Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Educational Services; and Health Care & Social Assistance. Seven industries reported no change in imports in November.
Imports
%Higher
%Same
%Lower
Index
Nov 2022
25.3
68.4
6.3
59.5
Oct 2022
5.7
89.3
5.0
50.4
Sep 2022
10.1
82.4
7.5
51.3
Aug 2022
8.0
80.3
11.7
48.2
Inventory Sentiment
The ISM® Services Inventory Sentiment Index contracted in November for the fourth straight month and the 18th time in the last 20 months. The index registered 44.2 percent, a 2.2-percentage point decrease from October's figure of 46.4 percent. This practicing indicates that respondents feel their inventories are too low when correlated to business activity levels.
The eight industries reporting sentiment that their inventories were too high in November — listed in order — are: Accommodation & Food Services; Arts, Entertainment & Recreation; Wholesale Trade; Retail Trade; Agriculture, Forestry, Fishing & Hunting; Construction; Health Care & Social Assistance; and Utilities. The five industries reporting a feeling that their inventories were too low in November are: Real Estate, Rental & Leasing; Other Services; Management of Companies & Support Services; Professional, Scientific & Technical Services; and Educational Services.
Inventory Sentiment
%TooHigh
%About Right
%TooLow
Index
Nov 2022
16.8
54.7
28.5
44.2
Oct 2022
19.7
53.4
26.9
46.4
Sep 2022
18.9
56.5
24.6
47.2
Aug 2022
22.9
48.3
28.8
47.1
About This Report
DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report's information reflects the entire U.S., while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of November 2022.
The data presented herein is obtained from a survey of supply executives in the services sector based on information they have collected within their respective organizations. ISM® makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making.
Data and Method of Presentation
The Services ISM®Report On Business® (formerly the Non-Manufacturing ISM®Report On Business®) is based on data compiled from purchasing and supply executives nationwide. Membership of the Services Business Survey Committee (formerly Non-Manufacturing Business Survey Committee) is diversified by NAICS, based on each industry's contribution to gross domestic product (GDP). The Services Business Survey Committee responses are divided into the following NAICS code categories: Agriculture, Forestry, Fishing & Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation & Warehousing; Information; Finance & Insurance; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Management of Companies & Support Services; Educational Services; Health Care & Social Assistance; Arts, Entertainment & Recreation; Accommodation & Food Services; Public Administration; and Other Services (services such as Equipment & Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning & Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services). The data are weighted based on each industry's contribution to GDP. According to the BEA estimates for 2020 GDP (released December 22, 2021), the six largest services sectors are: Real Estate, Rental & Leasing; Government; Professional, Scientific, & Technical Services; Health Care & Social Assistance; Information; and Finance & Insurance. Beginning in February 2020 with January 2020 data, computation of the indexes is accomplished utilizing unrounded numbers.
Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (Business Activity, New Orders, Backlog of Orders, New Export Orders, Inventory Change, Inventory Sentiment, Imports, Prices, Employment and supplier Deliveries), this report shows the percentage reporting each response and the diffusion index. Responses represent raw data and are never changed. Data is seasonally adjusted for Business Activity, New Orders, Prices and Employment. All seasonal adjustment factors are subject annually to relatively minor changes when conditions warrant them. The remaining indexes have not indicated significant seasonality.
The Services PMI® is a composite index based on the diffusion indexes for four of the indicators with equal weights: Business Activity (seasonally adjusted), New Orders (seasonally adjusted), Employment (seasonally adjusted) and supplier Deliveries. Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. An index practicing above 50 percent indicates that the services economy is generally expanding; below 50 percent indicates that it is generally declining. supplier Deliveries is an exception. A supplier Deliveries Index above 50 percent indicates slower deliveries and below 50 percent indicates faster deliveries.
A Services PMI® above 50.1 percent, over time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 50.1 percent, it is generally declining. The distance from 50 percent or 50.1 percent is indicative of the strength of the expansion or decline.
The ServicesISM®Report On Business® survey is sent out to Services Business Survey Committee respondents the first part of each month. Respondents are asked to ONLY report on U.S. operations for the current month. ISM® receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses to provide the most accurate picture of current business activity. ISM® then compiles the report for release on the third business day of the following month.
The industries reporting growth, as indicated in the ServicesISM®Report On Business® monthly report, are listed in the order of most growth to least growth. For the industries reporting contraction or decreases, those are listed in the order of the highest level of contraction/decrease to the least level of contraction/decrease.
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Institute for Supply Management® (ISM®) serves supply management professionals in more than 90 countries. Its 50,000 members around the world manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 as the first supply management institute in the world, ISM is committed to advancing the practice of supply management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM leads the profession through the ISM®Report On Business®, its highly regarded certification programs and the ISM® Advance™ Digital Platform. This report has been issued by the association since 1931, except for a four-year interruption during World War II.
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The next Services ISM®Report On Business® featuring December 2022 data will be released at 10:00 a.m. ET on Friday, January 6, 2023.