Weakness in orders in turn is pulling down 12-month expectations which are near July's three-year low. Employment is described as modest with hiring at its slowest pace since February. Price readings are mute.
Despite the soft details, the service sector is still humming along solidly and helping to offset weakness in manufacturing.
Recent History Of This Indicator:
The services PMI has been solid but slowing, coming in at 54.4 for the flash reading with a slight bounce higher expected for the final reading to 54.8. New business growth eased to the slowest rate of the year in the flash reading for October, raising questions over how long the service sector can resist global slowing.
The services PMI has been solid but slowing, coming in at 54.4 for the flash reading with a slight bounce higher expected for the final reading to 54.8. New business growth eased to the slowest rate of the year in the flash reading for October, raising questions over how long the service sector can resist global slowing.
...meanwhile...
ISM's
non-manufacturing index continues its searing pace, rising nearly 2-1/2
points to a much higher-than-expected 59.1 which exceeds Econoday's
high-end forecast by more than 1-1/2 points. Orders are robust with new
orders up more than 5 points to 62.0 and backlogs unchanged at 54.5
which is very strong for this reading. Export orders are also strong, up
2 points to 54.5 and underscoring the strength of the nation's services
surplus as seen in this morning international trade report. But the
highlight of the report, ahead of Friday's employment data, is a nearly 1
point rise in the employment index to 59.2 which is one of the very
strongest readings in the history of the report.
Strength is distributed broadly across industries led by transportation & warehousing, health care & social assistance, and professional, scientific & technical services, the latter a center of strength for foreign demand. The two non-service industries covered in this report are mixed with construction rising but mining, hit by low commodity prices, the only industry to report contraction in the month.
Many readings in this report are near records and follow similar readings in July and August which were also unusually strong. This report has been a consistent upside outlier but it undeniably hints at strength for employment and at a December FOMC rate hike. The Dow is moving off early lows following the report.
Strength is distributed broadly across industries led by transportation & warehousing, health care & social assistance, and professional, scientific & technical services, the latter a center of strength for foreign demand. The two non-service industries covered in this report are mixed with construction rising but mining, hit by low commodity prices, the only industry to report contraction in the month.
Many readings in this report are near records and follow similar readings in July and August which were also unusually strong. This report has been a consistent upside outlier but it undeniably hints at strength for employment and at a December FOMC rate hike. The Dow is moving off early lows following the report.
Recent History Of This Indicator:
The ISM non-manufacturing index has been running at strong rates of growth, strength that's impressive but which stands in contrast to general slowing for the economy. The Econoday consensus for October is a very strong 56.7 which would be very little changed from September's 56.9. Backlog orders, in complete contrast to most reports, have been building in this report as have export orders which have been climbing for five straight months in a reminder that demand for the nation's technical and managerial services, unlike demand for its goods, has shown resistance to the negative effects of the strong dollar.
The ISM non-manufacturing index has been running at strong rates of growth, strength that's impressive but which stands in contrast to general slowing for the economy. The Econoday consensus for October is a very strong 56.7 which would be very little changed from September's 56.9. Backlog orders, in complete contrast to most reports, have been building in this report as have export orders which have been climbing for five straight months in a reminder that demand for the nation's technical and managerial services, unlike demand for its goods, has shown resistance to the negative effects of the strong dollar.
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