US Services PMI Beats After Last Week's Manufacturing PMI Record Miss, Employment Plunges

Tyler Durden's picture

With US manufacturing PMI having missed by the most on record last week, it was only "fair" that the Services PMI from recent IPO Markit would beat expectations and hold at record highs. At 61.0 this is equal to the best print in history... but there is somethng wrong here. The surge in employment in June has been eviscerated as the index plunged back from record exuberance at 56.1 to 52.8 with some respondents noting "a degree of caution about the business outlook." This is not good news for long-awaited wage inflation that promises to lift all boats...




And employment tumbled...


 We leave it to a normally exuberant Markit to conclude...

“While a cyclical upswing appears underway across the service sector, the latest survey provides some indication that a smoother ride is not yet fully entrenched. Service providers saw new business gains slip to a three-month low, while payroll growth moderated since June amid a drop in confidence towards the year-ahead business outlook."

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Soul Glow's picture

Inflation up, employment down.  Thanks Bernanke/Yellen.

Headbanger's picture

What's that loud cracking noise??

Soul Glow's picture

Good question.  What is that noise?

midtowng's picture

Now we know what bad numbers they pushed forward in Q1 in order to make Q2 look better.

anmut's picture

Turbo Tuesday is right around the corner...

pazmaker's picture

Will the farce ever end?

TalkToLind's picture

Maintenance Mode, bitchez!

Al Huxley's picture

If Janet really cared for us, she'd show her love by stepping into this market and buying the fucking dip - what the hell is going on, market's been open for 37 minutes and its STILL red, and that's like, 2 days in a fucking row.  I like to buy the dip as much as anybody, but I can't be expected to hold these positions forever for fucks sake - where the hell's my return on investment?

caShOnlY's picture

they've got your back, bro, don't u worry about it.  as long as they have something called a "printer" or digital equivalent this game will go on and on.  It is the ONLY game left in town next to enron accounting and bullshit stats.

RiskyBidness's picture

I cannot remember a time in my life when I was more cynical.  As a matter of fact not even close.  I guess that means BTFD!  FUCK!!

BandGap's picture

I quit this shit years ago. My sanity and family come first. Happiness ensued.

It is loads of fun to watch, can't  wait to see the time-lapse compilation.

foodstampbarry's picture

I got a great idea, let's double down on the policies we've been enacting the last 5 years.

Just ask LIESman, he'll tell ya.

headhunt's picture

Liesmans problem is he believes his mirror.

yogibear's picture

10,000/day  baby boomers retiring. Demographics. 

Skip's picture

The OLIGARCHS have a PLAN for your life and it is working extraordinarily well:
Since 2000, All Employment Growth Has Gone to Immigrants
Center for Immigration Studies, June 26, 2014

Three conclusions can be drawn from the report’s analysis:

The long-term decline in the employment for natives across age and education levels is a clear indication that there is no general labor shortage, a primary justification for the large increases in immigration (skilled and unskilled) in the Schumer-Rubio bill and similar House proposals.
The decline in work among the native-born over the last 14 years of high immigration is consistent with research showing that immigration reduces employment for natives.
The trends since 2000 challenge the argument that immigration on balance increases job opportunities for natives. Over 17 million immigrants arrived in the country in the last 14 years, a time period in which native employment has deteriorated significantly.
Bill Gates' tech worker fantasy
July 27, 2014
Silicon Valley has created an imaginary staffing shortage.

Stagnant wages

If a shortage did exist, wages would be rising as companies tried to attract scarce workers. Instead, legislation that expanded visas for IT personnel during the 1990s has kept average wages flat over the past 16 years. Indeed, guest workers have become the predominant source of new hires in these fields.

Those supporting even greater expansion seem to have forgotten about the hundreds of thousands of American high-tech workers who are being shortchanged — by wages stuck at 1998 levels, by diminished career prospects and by repeated rounds of layoffs...

Unfortunately, companies are exploiting the large existing flow of guest workers to deny American workers access to STEM careers and the middle-class security that should come with them. Imagine, then, how many more Americans would be frozen out of the middle class if politicians and tech moguls succeeded in doubling or tripling the flow of guest workers into STEM occupations.

Redundant reforms

Another major, yet often overlooked, provision in the pending legislation would grant automatic green cards to any foreign student who earns a graduate degree in a STEM field, based on assertions that foreign graduates of U.S. universities are routinely being forced to leave. Such claims are incompatible with the evidence that such graduates have many paths to stay and work, and indeed the "stay rates" for visiting international students are very high and have shown no sign of decline. The most recent study finds that 92% of Chinese Ph.D. students stay in the U.S. to work after graduation.

Iriestx's picture

That and working in a corporate IT environment is one of the most horrible, stressful, demanding and thankless jobs a huamn being could have.  A janitor gets more respect and kindness in their day-to-day than corporate IT drones.  


If you're in this line of work, do yourself a favor, get out and find something else to do.  Find ANYTHING else!  Wages in IT are never going to go up as long as they're flooding the market with H1Bs, and the work is only going to get more thankless and demanding as time goes on.

Youri Carma's picture

Pitty that PMI is only 11% of the economy while consumer 70%.

Lordflin's picture

What is needed is more immigrant labor. That will fix everything.

SheepDog-One's picture

Wait....they think wages are about to rocket up? That's never happening.