ISM Services Collapse To Lowest In 4 Years; Employment Worst Since Lehman

Tyler Durden's picture

ISM Services headline index collapsed to 51.6 (missing expectations of 53.5) to its lowest since February of 2010. We are sure many will proclaim this as "weather-related" but remember the strong performance of the Manufacturing print. Respondents worried about weather, Obamacare, and oil prices... as the employment sub-index crashed from 56.4 (highest since Nov 2010) to 47.5 (lowest since Mar 2010) - the biggest drop since Lehman!


Big miss and lowest print in 4 years...


ISM Services Employment craters...


And before you blame the weather, the Manufacturing and Services data do not converge on that opinion...



Respondents worried about weather, Obamacare, and oil prices...

  • "Steady — trending slightly lower." (Finance & Insurance)
  • "Economy still plugging along, but at a very slow rate of growth." (Professional, Scientific & Technical Services)
  • "The Affordable Care Act is creating significant financial uncertainty to healthcare organizations. With little warning, the negative impact on revenue has been unprecedented." (Health Care & Social Assistance)
  • "Passage of the federal budget and subsequent funding appropriations are allowing government agencies to start spending funds on planned new projects." (Public Administration)
  • "Oil prices continue creeping upwards along with chemicals." (Utilities)
  • "Cold winter weather has had a major affect on us when compared to year-over-year." (Wholesale Trade)
  • "Winter weather is slowing down our projects; it should only be until April." (Construction)

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Stoploss's picture

Sounds like the respondents are either scared, or refuse to acknowledge reality.

OK, or both.

Let The Wurlitzer Play's picture

As long as the stock market is up everything is OK.


Four chan's picture

i'm surprised we are not up 300 points on this number.

bnbdnb's picture

The train needs more steam!

TheRideNeverEnds's picture

Give it some time, we are resting here and gathering steam for the push higher.  Maybe we will get a good 10-20% increase in the jobless claims tomorrow and that will help push us up past 1900.  

TheRideNeverEnds's picture

Give it some time, we are resting here and gathering steam for the push higher.  Maybe we will get a good 10-20% increase in the jobless claims tomorrow and that will help push us up past 1900.  

Rising Sun's picture

hey Barry - suck on this!!!!


you too Yellen - start sucking!!!!!


good job to the both of you - you fucking wretched assholes!!!!!

khakuda's picture

We should all hope the economy doesn't slow as this portends.  If it does, Yellen will go Abe and the S&P will sail happily into bubblephoria.

Debtonation's picture

Recession (whisper)

NoDebt's picture

Within the larger depression, yes.

Heiman Van Rockerchild's picture

Pg. 324: the powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations. Each central bank, in the hands of men like Montagu Norman of the Bank of England, Benjamin Strong of the New York Federal Reserve Bank, Charles Rist of the Bank of France, and Hjalmar Schacht of the Reichsbank, sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world.

NoIdea's picture

The news sent the market lower for all of ten minutes. It's getting harder to spot the dips to buy

ebworthen's picture

Let me guess, markets are green?

HaroldWang's picture

Overall respondents' comments reflect cautiousness regarding business conditions and the economy - not so much "weather-related" as talking heads would like everyone to believe.

praps's picture

Rivets are going to start popping soon.  

buzzsaw99's picture

as long as the maggots are happy that's all that matters

Bosch's picture


Smith & Wesson up 18% today.  Suck it libtards. 

starman's picture

"Cutting costs" what they call this at corporate meetings.

And there's more to come!

Spungo's picture

Thank god most Americans hold the majority of their wealth in the stock market. If they relied on archaic things like jobs, they would be in some serious trouble right now.

RevRex's picture

Recovery Summer Five is right around the corner, just as soon as the economy hits escape velocity.......Obama said so, and if you don't trust him, "your raycisststs"