Wednesday, October 26, 2016
Markit Economics' Service Flash PMI Strong
Markit Economics' U.S. samples are reporting a sharp upturn in business
this month, first with Monday's manufacturing report and now with the
service flash where the headline index is up nearly 3 points to 54.8 for
the strongest rate of composite growth this year. New orders are at an
11-month high as is business activity, and year-ahead expectations are
at their best level since August last year. The rise in demand is being
reflected in inflation readings with input costs moving up from a nearly
2-year low and with selling prices also moving higher. Not showing much
life, at least yet, is employment where job creation did improve but
still remains near a 3-1/2 year low. The report attributes this month's
strength to rising hopes for improvement in the domestic economy. The
sharp gains for Markit's samples are a surprise but are still only
anecdotal indications. Definitive data on October will be posted next
week with the month's unit auto sales and of course the monthly
employment report.
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