Sorry, I couldn’t resist.
This morning, ISM released its index for the non-manufacturing sector. The index value was 49.3%. According to ISM’s Web site: “A reading above 50 percent indicates the non-manufacturing sector economy is generally expanding; below 50 percent indicates the non-manufacturing sector is generally contracting.”
So, on Monday, ISM reported that the manufacturing sector was contracting. Today, ISM reported that the non-manufacturing sector was contracting.
So it only makes sense that the overall economy is contracting, right?
Not according to ISM.
As I reported yesterday, ISM essentially says that a decline in manufacturing equals fairly healthy growth in the overall economy.
Yeah, that makes sense. Especially when ISM’s own numbers suggest that manufacturing and non-manufacturing are both contracting.
Why am I bothered by this?
Because this poor work hurts the reputation of the purchasing and supply management profession. Having an organization with “supply management” in its title put out BS only ends up hurting the credibility of each and every purchasing and supply management professional who is struggling to prove to their management that we understand business at a high level.
I promise I’ll get back to more educational and positive posts starting tomorrow.
Thank God ISM’s next report doesn’t come out until next month…
To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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