(6/5/2014) The May ISM-NY Report on Business... in 30 seconds, 60 seconds, or 2 minutes
The ISM-New York Report on Business is released on the second business day of each month at 9:45 AM Eastern. Buyers Meeting Point has been following the ISM reports on business for a while now, helping you apply information from the indexes (which is collected from procurement professionals) to your own work. If you have never read the report, it can take some adjustment. We boil each report down to the most basic and usable components. The most important thing to keep in mind when reading this report is that no one number represents the findings of the report; each piece of data only has value when considered as part of a trend - relative to the month(s) or year before.
The full May ISM-NY Report on Business is available on ISM New York's site as a download.
Note: A reading of 50% means no change from the prior month, greater than 50% indicates a faster pace of activity, and less than 50% a slower rate.
If you only have 30 seconds, here is what you should know about this month’s report:
The Current Business Conditions index came in at 55.3 moving solidly into growth territory after last month's ten month low of 50.6.
If you have 60 seconds, here is a little more:
- Future optimism rebounded from last month's five-year low of 58.8 to 69.7, the highest point in three months..
- After a swing up to a record high in February and down to a two and a half year low in April, Employment returned to a neutral 50.3 in April.
- Quantity of Purchases also reversed direction, coming in at 58.9 after last month's three and a half year low of 41.7. Prices paid expanded to 58.6, still shy of February's three year high.
If you have 2 whole minutes to give:
The detailed coverage of business constraints in the Report on Business includes the following:
- The total swing from greatest opportunity (Technology) to greatest impediment (Cost of benefits) compressed by eight percent after remaining consistent for two months.
- There are twelve impediments above the breakeven point, three neutral, and ten opportunities. This echoes the positive trend in the rest of the index.
- Energy costs moved up seven positions as an increasing impediment, a relatively small move in a month with minor changes. Capital equipment fell ten positions to become this month's fourth best opportunity after being a moderate impediment last month.