Hospital PMI® at 53.5%; January 2025 Hospital ISM® Report On Business®

TEMPE, Ariz., Feb. 7, 2025 /PRNewswire/ -- Economic activity in the hospital subsector grew in January for the 17th consecutive month after contracting twice in the previous four-month period, with 35 consecutive months of growth prior to that, say the nation's hospital supply executives in the latest Hospital ISM^® Report On Business^®.

The report was issued today by Nancy LeMaster, MBA, Chair of the Institute for Supply Management^® (ISM^®) Hospital Business Survey Committee: "The Hospital PMI^® registered 53.5 percent in January, a 2.8-percentage point decrease from the December reading of 56.3 percent, indicating a 17th consecutive month of growth. The Business Activity Index was in expansion territory for the third straight month. The New Orders Index expanded for the third consecutive month, and the Employment Index was in expansion territory for the second straight month. The Supplier Deliveries Index was in expansion (which indicates slower delivery performance) for the 17th consecutive month. The Case Mix Index remained in expansion in January, registering 53 percent, a decrease of 0.5 percentage point from the reading of 53.5 percent reported in December. The Days Payable Outstanding Index returned to contraction territory in January, registering 48 percent, down 3 percentage points from the 51 percent reported in December. The Technology Spend Index reading of 57.5 percent is an increase of 3 percentage points compared to the 54.5 percent recorded in December. The Touchless Orders Index was 'unchanged' in January, registering 50 percent, down 1.5 percentage points from the 51.5 percent reported in December."

LeMaster continues, "The most frequently mentioned issue by the Hospital Business Survey panelists was their concerns surrounding the impact of tariffs on the price of supplies. There was significant concern that even companies not directly impacted by tariffs will use them as an excuse to raise prices. This was the first month that panelists indicated that respiratory cases had an impact on volumes. Some facilities continued to reschedule elective procedures due to the hurricane-caused IV fluid shortage. Inventories continued to increase as a buffer to product shortages and in preparation for increased volumes from seasonally driven respiratory illnesses. Employment continued to grow due to successful recruitment efforts and an increase in patients with acute conditions."

About This Report
The information compiled in this report is for the month of January 2025.

The Hospital PMI^® was developed in collaboration with the Association for Health Care Resource & Materials Management (AHRMM), an association for the health care supply chain profession, and a professional membership group of the American Hospital Association (AHA).

The data presented herein is obtained from a survey of hospital supply executives based on information they have collected within their respective organizations. ISM^® makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making.

Data and Method of Presentation
The Hospital ISM^® Report On Business^® is based on data compiled from hospital purchasing and supply executives nationwide. Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (Business Activity, New Orders, Employment, Supplier Deliveries, Inventories, Prices, Prices: Pharmaceuticals, Prices: Supplies, Backlog of Orders, Imports, Inventory Sentiment, Case Mix, Days Payable Outstanding, Technology Spend, and Touchless Orders), this report shows the percentage reporting each response and the diffusion index. Responses represent raw data and are never changed. Beginning in January 2021, the Report On Business^® staff and consultants are gathering market information to better validate the Exports Index. Exports Index data are still being collected.

The Hospital PMI^® is a composite index computed from the following, equally weighted indexes: Business Activity, New Orders, Employment and Supplier Deliveries. Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. A Hospital PMI^® index reading above 50 percent indicates that the hospital sub-sector is generally expanding; below 50 percent indicates that it is generally declining. For the sub-indexes, except Supplier Deliveries, an index reading above 50 percent indicates that the sub-index is generally expanding; below 50 percent indicates that it is generally contracting. A Supplier Deliveries Index above 50 percent indicates slower deliveries and below 50 percent indicates faster deliveries.

The Hospital ISM^® Report On Business^® survey is sent out to the Hospital Business Survey Panel respondents the first part of each month. Respondents are asked to ONLY report on U.S. operations for the current month. ISM^® receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses to give the most accurate picture of current business activity. ISM^® then compiles the report for release on the fifth business day of the following month.

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You shall not create, recreate, distribute, incorporate in other work, or advertise an index of any portion of the Content unless you receive prior written authorization from ISM. Requests for permission to reproduce or distribute ISM ROB Content can be made by contacting Rose Marie Goupil in writing at: ISM Research, Institute for Supply Management, 309 W. Elliot Road, Suite 113, Tempe, AZ 85284-1556, or by emailing [email protected]; Subject: Content Request.

ISM shall not have any liability, duty, or obligation for or relating to the ISM ROB Content or other information contained herein, any errors, inaccuracies, omissions or delays in providing any ISM ROB Content, or for any actions taken in reliance thereon. In no event shall ISM be liable for any special, incidental, or consequential damages arising out of the use of the ISM ROB. Report On Business^®, PMI^®, Manufacturing PMI^®, Services PMI^®, and Hospital PMI^® are registered trademarks and trademarks of Institute for Supply Management^®. Institute for Supply Management^® and ISM^® are registered trademarks of Institute for Supply Management, Inc.

About Institute for Supply Management^®
Institute for Supply Management^® (ISM^®) is the first and leading not-for-profit professional supply management organization worldwide. Its community of more than 50,000 in more than 100 countries manages about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 by practitioners, ISM is committed to advancing the practice of supply management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM empowers and leads the profession through the ISM^® Report On Business^®, its highly regarded certification and training programs, corporate services, events, and assessments. The ISM^® Report On Business^®, Manufacturing, Services, and Hospital, are three of the most reliable economic indicators available, providing guidance to supply management professionals, economists, analysts, and government and business leaders. For more information, please visit: www.ismworld.org.

The text version of the public Hospital ISM^® Report On Business^® is posted on ISM^®'s website at www.ismrob.org on the fifth business day* of every month at 10:00 a.m. ET.

The next Hospital ISM^® Report On Business^® featuring February 2025 data will be released at 10:00 a.m. ET on Friday, March 7, 2025.

*Unless the New York Stock Exchange is closed.

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SOURCE Institute for Supply Management