Non Manufacturing ISM Crashes To Lowest Since February 2010, New Orders Devastated To July 2009 Levels

Tyler Durden's picture

Baffle with BS continues: just as the June Mfg. ISM predictably beat two days ago, so today's Non-mfg ISM missed, printing at 52.2 below expectations of a 54.0 and down from 53.7. This was the lowest print since February 2010, and the biggest miss to expectations since April 2010. The New Order components was absolutely destroyed printing at 50.8, down from 56.0, and the lowest since July 2009. Furthermore, Business Activity tumbled from 56.5 to 51.7, far below consensus of 56.8, and the lowest since November 2009. The only good indicator on the face of this absolute devastation was the Employment index which mysteriously rose by 4.6 to 54.7, the highest since February: those part-time jobs must sure be accretive to businesses.

The collapse in its full glory:

Full breakdown:

From the report:

The report was issued today by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee. "The NMI™ registered 52.2 percent in June, 1.5 percentage points lower than the 53.7 percent registered in May. This indicates continued growth at a slightly slower rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index registered 51.7 percent, which is 4.8 percentage points lower than the 56.5 percent reported in May, reflecting growth for the 47th consecutive month. The New Orders Index decreased by 5.2 percentage points to 50.8 percent, and the Employment Index increased 4.6 percentage points to 54.7 percent, indicating growth in employment for the 11th consecutive month. The Prices Index increased 1.4 percentage points to 52.5 percent, indicating prices increased at a faster rate in June when compared to May. According to the NMI™, 14 non-manufacturing industries reported growth in June. Respondents' comments are mixed about business conditions depending upon the industry and company. The majority indicate that growth has been slow and incremental; however, it is still better year over year."

The always entertaining respondents:

  • "Lower revenues due to healthcare reform, causing pressure to cut costs and headcount." (Health Care & Social Assistance)
  • "Business is steady, but profitability is coming from cost savings measures. Some divisions expected to be flat or slightly below expectations." (Professional, Scientific & Technical Services)
  • "Sales increased slightly again for the fourth consecutive month over last year's sales for the same period. Hiring increased slightly as well." (Public Administration)
  • "Business environment certainty continues to stabilize. Effects on our business lag. We expect as housing and building continue to improve, we will see gains." (Management of Companies & Support Services)
  • "Slow growth — intense downward price pressure from customers." (Wholesale Trade)
  • "The roller coaster ride is not over yet. Customer counts are well below expectations, but overall revenue is higher than expected. The fluctuations are significant, week to week as much as YTD, resulting in problems with accurate forecasting." (Arts, Entertainment & Recreation)

And the punchline from the report: 

  • Helium is the only commodity reported in short supply.

Sure is....

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topspinslicer's picture

All sectors will improve once the obomba makes electricity twice the price. It's the new normal -- if you have to ask how that works you aint down with the obomba brotha!

Eireann go Brach's picture

All I want for Christmas, is that this house of cards economy crashes on Obaam's watch! So the world can watch the biggest farce of a man be exposed in all his lying glory!

l1b3rty's picture

ah, July 2009. We've missed you. Welcome back!

Yen Cross's picture

 $102.00 crude and rising rates will make things even moar delightful.  (is that sawdust on my pizza?)

LetThemEatRand's picture

Once again as I am about to say "how can they not see the error in their money printing strategy!" I must remind myself that the entire and only objective from the beginning was to make bankers rich, not to "fix" the economy.  As usual, well played Ben.

BurningFuld's picture

No shit. Let's just keep giving free shit (money) to everyone, it is such a great motivator to get everyone up off their fat ass and working.

Wave Maker's picture

Is this good news or bad news for the market?  It sounds bad, but badisgood, so is it good?

PaperBear's picture

All this time with a low interest rate and followed with all that QE and things are back to 3.5 years ago and 4 years ago respectively.

dcohen's picture

This is not bullish, dividend stocks are in for pain.

NidStyles's picture

Ok now I can say what I couldn't say in that other article. The "Market" is making sense now, sort of...

101 years and counting's picture

bulls are so pathetic.  crashing economy = more failed policy by the fed.  this "market" is 100% over priced right now.  and will revert back within a year.

I Am Not a Copper Top's picture

This is bullish, right? RIGHT???

Hohum's picture

Yea, but, auto sales in June were grrrreat! /sarc

fonzannoon's picture

where are the retards who used to yell BULLISH at these reports.

My guess is they are rich and retired.

Dr. Engali's picture

Unfortunately I'm neither rich nor retired, but I have been called retarded on more than one occasion.

caimen garou's picture

as ron white would say,"you can't fix stupid."

fonzannoon's picture

anyone watching linn energy? I remember see that stock tank to the low 30's a few weeks ago. Cramer had the CEO on and fondled his balls for a few minutes and then spent the next day talking about what a great interview it was. Whoops.

This dude needs to be let go.

ParkAveFlasher's picture

To hell with Linn Energy!  $hit!!

bnbdnb's picture

Are you hiring more full time workers? No.

Are you hiring more part time workers? Yes.

....Well, they did say 'Yes'.


imapopulistnow's picture

Take out the part-time job driven employment number and the "real" read is closer to 51.7.

Dr. Engali's picture

I forget is this a taper on or is it a taper off day?

WallowaMountainMan's picture

slow but steady growth and an uptick in inflation. fed has to be happy.

BlueStreet's picture

Mr. S&P meet Mr. 200 day.  

HowardBeale's picture

Everybody in the "pool" for the "long" weekend! What could possibly go wrong?

Green! Green! Green! Green!


P.S. What rhymes with Lehman Moment?

Yen Cross's picture

   It looks like the POMO fiat is being placed in equities today. The DAX is down 1.5% and the Dow is flat.

HowardBeale's picture

So once the Fed. owns all bonds and stocks, what does that make my pension worth...

orangegeek's picture

everyday is POMO day - the July schedule says a 4.75B pump today - that should keep things pumped to the 1p close.



adr's picture

Try getting a helium balloon on the day of a Birthday party. Most stores now require five days notice.


ParkAveFlasher's picture

Do NOT accept paper helium.  TAKE DELIVERY.

SheepDog-One's picture

WHEW! Well at least we got some good news finally! That being really really bad news. Amurka...FUCK YEAH!!

SheepDog-One's picture

Part-time shitter cleaners now account for the bulk of 'U.S. Employment'.

Lou666666's picture

Hi All.,

I am not particulalry active when it comes to posts, but I just could not help myslef this time.. Did anybody read teh headline on teh Non-Manufactring ISM miss from Bloomberg ? It states:

"Service Industries Unexpectedly Grew at Slower Pace in June"

It's like an algo progammer is hired to edit the headlines.. See., Not only the reading did not miss.. One would think it actually grew..... only at a "slower" pace..

Well, this is why I don;t comment too much.. I thought it would help me ease off my frustration and rage.. It just got worse..