Business activity in the non-manufacturing sector increased at a faster rate in May 2007, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business®.
The report was issued today by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee; and senior vice president — supply management for Hilton Hotels Corporation. "Non-manufacturing business activity increased for the 50th consecutive month in May," Nieves said. He added, "Business Activity, New Orders and Employment increased at a faster rate in May than in April. The Prices Index increased this month to 66.4 percent. Twelve non-manufacturing industries reported increased activity in May. Members' comments in May are mostly positive about business conditions. There is continued concern with rising fuel costs. The overall indication in May is continued economic growth in the non-manufacturing sector at a faster pace than in April."
The overall index, employment index, and the new orders index were all better than expected. The employment index confirms the recent drop in unemployment claims. It appears that the economy is recovering from the first quarter slump. We have contended for some time that the housing slowdown would not cause a recession and the economic stats are now starting to bear that out.