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ISM Services Surges To Highest In 9 Years, Despite New Order Weakness
Despite 2 straight months of weakness in Services PMI, ISM's non-manufacturing index (adjusted for whatever meme is required) exploded to 59.6, another huge beat, and its highest since August 2005. The Business Activity index is highest since 2004, employment highest since Feb 2006, but new orders (domestic and export) dropped.
From the report:
The report was issued today by Anthony Nieves, CPSM, C.P.M., CFPM, chair of the Institute for Supply Management® (ISM®) Non-Manufacturing Business Survey Committee. "The NMI® registered 59.6 percent in August, 0.9 percentage point higher than the July reading of 58.7 percent. This represents continued growth in the Non-Manufacturing sector. The August reading of 59.6 percent is the highest for the composite index since its inception in January 2008. The Non-Manufacturing Business Activity Index increased to 65 percent, which is 2.6 percentage points higher than the July reading of 62.4 percent, reflecting growth for the 61st consecutive month at a faster rate. This is the highest reading for the index since December of 2004 when the index also registered 65 percent. The New Orders Index registered 63.8 percent, 1.1 percentage points lower than the reading of 64.9 percent registered in July. The Employment Index increased 1.1 percentage points to 57.1 percent from the July reading of 56 percent and indicates growth for the sixth consecutive month. The Prices Index decreased 3.2 percentage points from the July reading of 60.9 percent to 57.7 percent, indicating prices increased at a slower rate in August when compared to July. According to the NMI®, 15 non-manufacturing industries reported growth in August. Respondents' comments vary by business and industry. The majority of the comments reflect continued optimism in regards to business conditions. Some respondents indicate that there may be some tapering off in the recent strong rate of growth in the non-manufacturing sector."
The breakdown by components:
And the always goalseeked respondents:
- "General business conditions have improved." (Information)
- "Local business, and thus lending activity, is picking up." (Finance & Insurance)
- "Still incurring significant global challenges on pharmaceutical solution supply shortages." (Health Care & Social Assistance)
- "Pricing on most food related items continue to go up monthly." (Accommodation & Food Services)
- "Business is holding steady with orders increasing slightly. The rest of 2014 should show some slight growth. International orders have been slow to match U.S.
- growth but appear to be increasing slightly as well." (Professional, Scientific & Technical Services)
- "The local economy continues to get stronger." (Public Administration)
- "Year-over-year same store sales up approximately 4 percent resulting in continued store remodeling, new construction and upgrades." (Retail Trade)
- "New orders, project business and backlog remain robust. Internal investment in capital remains positive." (Wholesale Trade)
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I love it when I can have my cake and eat it too. Then sell it to the next sucker in line.
That would be the local sewerage department...and they charge for it
yesterday ZH announced that the spx has been going above and below 2000 and suggested it is set for a breakdown, and i said it is consolidating for a breakout to the upside.....and SURE ENOUGH.....spx 2011 and new highs in the DOW. I must be a genius
Draw a resistance line from the high on the 26th and yesterday's high and let us know when it's significantly over that. Until then we have a capped top that may or may not break out. I say they hold this channel for a bit longer and then it drops.
Record EBT cards, We will defeat Russia/China in blowing bubbles and distorting reality. Yea, GO team USA
A lot of good numbers lately. If I were a cynical person I would think this might have something to do with the upcoming elections, but surely that can't be possible.
Unpossible in fact.
Dafuq is up with this, look at the revision! http://bloomberg.econoday.com/byshoweventfull.asp?fid=461238&cust=bloomberg-us&year=2014&lid=0&prev=/byweek.asp#top
So imports, exports, and new orders down..inventories flat...yet buisness activity and backlogs are up....makes total fucking sense...
This is why you just buy the dip. Good news=up,bad news=up,war=up,ECB rate cuts=up,etc=up. We have a more likely scenario of a solar flare knocking out the world's grid before the market crashes.
No major flares for at least a week. There aren't any effective sunspots earthfacing at the present time. On the other hand the ones that sent out an enormous X flare away from the earth last week are now turning toward us. Couple that with the fact that earth's magnetic field has dropped at least 25% and we're now getting geomagnetic disturbances from fairly minor flares and you may be right. I'm sure the potential collapse of the grid is priced in though.
The strangle hold on PM's will be something talk about for decades lol...amazing really.
Just goes to show that printing money out of thin air is nothing but positive. Nirvana. What could possibly go wrong. And yes, PMs will be a site to behold at some point.