ISM Non-Manufacturing Sample Solid, But Cooling

Strength in ISM's non-manufacturing sample is cooling but remains very solid, at 55.9 in November which is, however, the lowest rate of monthly growth since May. Readings across the report have also edged down to growth levels last seen in the second quarter including new orders (57.5), backlog orders (51.5), and employment (55.5). New export orders, at 49.5, show their first contraction since April. The breadth of strength across industries, with 12 showing growth and six in contraction, is positive but, like most of this report, less positive than prior months. Still, this report surged through the third quarter and into October making a step down to a lower rate no major surprise.

Recent History Of This Indicator:
The ISM non-manufacturing index has been running at very strong rates of growth, strength however that stands in contrast to generally moderate rates of growth for the economy. The Econoday consensus is calling for 58.2 in November, in what would be only a small step back from October's 59.1 when order readings were unusually strong across the board.