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Markit Reports Slowest Service Jobs Creation In Over A Year

Tyler Durden's picture




 

While modestly better than expected, Markit's Services PMI fell in April from March's snap-back "we are saved" post-weather bounce.. and that's the good news! While abover "50" and this in expansion mode, job creation slipped to 13-month lows! As Markit summarizes, "the surveys are also signalling an easing in the rate of job creation since the start of the year, pointing to private sector payroll growth in the region of 100k, meaning a substantial slowing compared to the recent average 225k increases signalled by official data over the past three months."

 

The headline data fell but remains in expansion...

 

But jobs are collapsing...

 

Via Markit,

“The survey data point to robust growth at the start of the second quarter, adding to hopes that the official data will show the economy rebounding strongly from the weather-related stalling seen in the first quarter... The final services PMI came in higher than the flash reading and signals only a very minor slowing in the rate of expansion compared with March. Combined with the three-year high recorded by the manufacturing survey, the two PMIs suggest that the US economy enjoyed a strong start to the second quarter. GDP should rebound strongly from the 0.1% annualised rate seen in the first quarter. The final April PMI numbers are broadly consistent with a 2.5% annualised GDP growth rate.

The good news needs to be qualified, however.

 

First, the surveys suggest that the trend rate of growth has eased since late last year. With the exceptions of last October’s government shutdown and the weather-disruptions at the start of the year, April’s growth rate was the slowest since May last year.

“Second, the surveys are also signalling an easing in the rate of job creation since the start of the year, pointing to private sector payroll growth in the region of 100k, meaning a substantial slowing compared to the recent average 225k increases signalled by official data over the past three months.”

Remember: in a baffle with BS world, the above simply means that the official Services ISM print due in minutes, will be a modest miss to consensus expectations, even as service jobs surge. Because one has to keep the vacuum tubes on edge.

 

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Mon, 05/05/2014 - 09:55 | 4728159 Budd aka Sidewinder
Budd aka Sidewinder's picture

I'm confused.....are we doing great as far as employment goes or not so great?

Mon, 05/05/2014 - 09:58 | 4728171 Bernoulli
Bernoulli's picture

We're doing not so great, which is great. And in general we are doing great.

BUY!

Mon, 05/05/2014 - 10:19 | 4728219 lordylord
lordylord's picture

Government measures its success based on how many people are dependent upon government.

Mon, 05/05/2014 - 09:59 | 4728179 Dr. Engali
Dr. Engali's picture

Ask that question to the 48 million on SNAP. 

Mon, 05/05/2014 - 10:06 | 4728194 insanelysane
insanelysane's picture

I think the 48 million on SNAP are asking themselves; I can get these meager benefits for doing absolutely nothing or I can bust my ass and get a little more than these meager benefits.

Mon, 05/05/2014 - 10:10 | 4728202 sessinpo
sessinpo's picture

insanelysane  I think the 48 million on SNAP are asking themselves; I can get these meager benefits for doing absolutely nothing or I can bust my ass and get a little more than these meager benefits.

---

Thank goodness they aren't asking for freedom and dignity or then their might be a problem.

Mon, 05/05/2014 - 11:41 | 4728501 Bemused Observer
Bemused Observer's picture

LOL! Thank you for pointing that out!

All the budget-cutters, 'cut the deadbeats off!' folks out there should internalize this thought. If you want things to keep running, you'd best PRAY that food and "free phones" are the ONLY things the deadbeats demand. Those are EASY to supply, and very cost-effective, even though they irk you.

If those folks ever wake from their 'slumber', and decide to demand something more substantial, you'll be wishing for the 'free stuff' army to come back. They were EASY to mollify, and the cost was a bargain compared to what some REAL demands are gonna cost you.

Even Paul Ryan would never actually DO all those things he tickles your ears with. He tells you what he thinks you want to hear, but when push comes to shove, all you'll get is a few token gestures that end up hurting all the wrong people, and the 'free stuff army' will march on. Because there are just too many of them, and they aren't going anywhere. And all your politicians know this very well.

Wake the fuck UP people! Your neighbor isn't a 'deadbeat', he's not trying to 'get over'. He's trying to survive, just like you. Your fight isn't with HIM!

The first step in winning a war is to properly identify the enemy before you start shooting so you don't end up hitting your own people!!!

Mon, 05/05/2014 - 10:14 | 4728210 RevRex
RevRex's picture

That's the Hoax and Chains that America voted for!

Mon, 05/05/2014 - 10:32 | 4728259 RSloane
RSloane's picture

Automation engineering is such a beautiful thing.

Mon, 05/05/2014 - 10:11 | 4728206 snodgrass
snodgrass's picture

Real unemployment rate is 23 %. The govt. stats are bullshit. Most of the jobs being created are low wage jobs in health care, service. etc. Try living on it and paying for Obummercare.

Mon, 05/05/2014 - 09:55 | 4728160 Winston Churchill
Winston Churchill's picture

Sell in May, and run for the hills.

Mon, 05/05/2014 - 09:56 | 4728162 Bernoulli
Bernoulli's picture

I don't believe a single word Markit says. Not one.

Mon, 05/05/2014 - 09:56 | 4728164 The worst trader
The worst trader's picture

Bullish! Tomorrow is Tuesday! BTFD

Mon, 05/05/2014 - 09:58 | 4728169 Kaiser Sousa
Kaiser Sousa's picture

no way a 3 digit loss in the Dow will b allowed to happen today...

rocket recovery already underway..the moves as always inexplicable in the face of nothing but horrid economic data and geo-political chaos...

take note of the sideways trade in the only 2 forms of real money as well with the cesspool aka London and the Gold bottom less pitt aka Asia closed...

still stackin....

Mon, 05/05/2014 - 10:01 | 4728184 Dr. Engali
Dr. Engali's picture

Don't forget, Obama says buy the U.S market and short Russia.

Mon, 05/05/2014 - 10:07 | 4728198 buzzsaw99
buzzsaw99's picture

BULLISH!

Mon, 05/05/2014 - 10:15 | 4728214 RevRex
RevRex's picture

BULLSHITISH

Mon, 05/05/2014 - 10:26 | 4728236 BullyBearish
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KORS is up...keep shopping!!!!!!!!!!!

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