This decrease in the index level indicates that non-manufacturing purchasing executives felt a lesser degree of discomfort with current levels of inventory in May than they did during April. The percentage of members reporting higher prices dropped 2 percentage points to 26 percent in May, the proportion indicating no change rose 4 percentage points to 67 percent, and the number who noted lower prices also dropped 2 percentage points to 7 percent. Non-Manufacturing Employment Index for May is 46.6 percent compared to 46.7 percent in April. May's Index was also the lowest value recorded since inception of NAPM's non-manufacturing business survey in July 1997. Survey responses reflect the change, if any, in the current month compared to the previous month.
Responses represent raw data and are never changed.
The resulting single index number is not seasonally adjusted. Several years of data will need to be developed before that type of non-manufacturing indicator can be developed. Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. Supplier Deliveries is an exception. A Supplier Deliveries index above 50 percent indicates slower deliveries and below 50 percent indicates faster deliveries.