May 2021 ISM and Markit Services Surveys Improve And Remain Well Into Expansion
The ISM improved and remained in expansion whilst the Markit PMI improved and now is at record highs.
Analyst Opinion of the ISM and Markit Services Survey
With the economy reopening, it comes as no surprise that both of these indices are well into expansion.
From Econoday:
Stronger client demand spurs sharper output expansion
Cost burdens rise at quickest pace on record
Further steep increase in employment despite hiring
May PMI™ data indicated the fastest rise in business activity since data collection for the series began in October 2009. The unprecedented expansion in output was supported by a marked increase in new business, in turn buoyed by the quickest rise in new export orders for nine months. Greater business requirements resulted in a further sharp rise in employment. That said, the pace of job creation softened as firms reported difficulties filling vacancies. Strain on capacity was
Written by Steven HansenThe ISM Manufacturing survey improved and remains in expansion. The Markit PMI manufacturing index improved and remains in expansion.
ISM
Economic expansion for 12
Suppliers struggle to meet increasing demand
Lead times longest since 1987
Prices highest since 2008
Wide-scale shortages of critical basic materials
Difficulties in transporting products
Short-term shutdowns due to part shortages
Exports and imports growing
While the economy is expanding, manufacturers continue to struggle with workforce shortages, limited supplies and the largest order backlog since 1993. Economic activity in the manufacturing sector grew in May, with the overall economy notching a 12th consecutive month of growth, say the nation s supply executives in the latest Manufacturing ISM Report on Business.
The Manufacturing PMI, or the Purchasing Managers’ Index, is a set of economic indicators based off surveys of private-sector companies. The report was issued June 1 by Timothy R. Fiore, chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee.
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®) Hospital Business Survey Committee: The Hospital PMI
™ registered 61.9 percent in April, up 3.1 percentage points from the March reading of 58.8 percent, indicating an 11th consecutive month of growth. The Business Activity and New Orders indexes increased in April compared to March.
The Employment Index expanded in April, following a month of contraction. The Case Mix Index increased to 55.5 percent, up 1.5 percentage points compared to the March reading of 54 percent. The Days Payable Outstanding Index increased to 57 percent, up 13 percentage points from the March reading of 44 percent. The Technology Spend Index registered 55 percent, an increase of 4 percentage points from the March reading of 51 percent.