Growth in new orders is getting a boost from business investment but still slowed to a 6-month low. Backlog accumulation softened to a 4-month low. Employment growth is solid as are business expectations. Input costs continue to rise but at slowing pace with selling prices also still rising but again at a slower pace.
What stands out in this report is a lack of acceleration which points to a steady but still healthy fourth quarter for the bulk of the economy.
Recent History Of This Indicator:
PMI services popped back to 55.7 for the mid-month October flash after slowing below 55 during September. Strength was centered in the 6-month outlook offsetting slowing for orders and employment. The consensus for October's final is 55.9.
PMI services popped back to 55.7 for the mid-month October flash after slowing below 55 during September. Strength was centered in the 6-month outlook offsetting slowing for orders and employment. The consensus for October's final is 55.9.
...meanwhile...
ISM's
non-manufacturing sample continues to report unusual strength, at a
composite score of 60.1 which just tops Econoday's high estimate and is
the strongest showing since the height of the previous expansion in
2004. New orders, at 62.8, are unusually strong with export orders at a
very positive 60.0. Backlogs are up, inventories are building, and
employment, at 57.5, is at a 6-month high. Delivery delays reflect the
overall pace of activity and probably also lingering hurricane effects.
Input prices are elevated but down from September.
ISM non-manufacturing, which has been strong all year, tracks not only services but also construction and mining, two industries reporting some of the greatest strength in the month and giving the report a general lift compared to this morning's service sector report from Markit which excludes these two industries and which shows less strength. But taken together, the reports point to steady and solid momentum for the bulk of the U.S. economy.
ISM non-manufacturing, which has been strong all year, tracks not only services but also construction and mining, two industries reporting some of the greatest strength in the month and giving the report a general lift compared to this morning's service sector report from Markit which excludes these two industries and which shows less strength. But taken together, the reports point to steady and solid momentum for the bulk of the U.S. economy.
Recent History Of This Indicator:
ISM non-manufacturing re-accelerated in September to 59.8 and the highest score in 3 years. Orders and employment in ISM's sample have been very strong while deliveries, tied to Hurricanes Harvey and Irma, have slowed sharply. Econoday's call for October is 58.6.
ISM non-manufacturing re-accelerated in September to 59.8 and the highest score in 3 years. Orders and employment in ISM's sample have been very strong while deliveries, tied to Hurricanes Harvey and Irma, have slowed sharply. Econoday's call for October is 58.6.
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