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