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Service PMI Slides To 6 Month Low, Implies Slide In Q3 GDP To 2.5%; Ebola, Ukraine Blamed
It appears the cleanest dirty shirt may need some laundering. For the 4th month in a row, US Services PMI has dropped (hitting 6-month lows) and missing expectations by the most this year. The excuse for this weakness - oh that's easy -"there are clearly many concerns, ranging from worries about the impact of Ebola, the Ukraine crisis, the ongoing plight of the Eurozone , signs of further weakness in emerging markets and the Fed starting to tighten policy."
"in line with the trend for output levels, the rate of new business growth eased to a three-month low in October and was softer than the post-crisis high recorded in June."
"the degree of business confidence was the weakest since July and one of the lowest readings seen over the past two years. Some firms suggested that rising economic uncertainties and signs of softer sales growth in recent months had weighed on their business confidence during October"
"Having signalled an annualised rate of GDP growth of approximately 3.5% in the third quarter, the October readings indicate that the pace of economic growth looks set to moderate in the fourth quarter, down to perhaps 2.5% or less if the PMI falls further in coming months."
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Time for some moar QE4...
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I trust the predictive ability of survey data about as much as I trust the predictive ability of PhD Economists.
Quick! Congress must pass some very complicated regulation that requires more service employees to help with compliance, generating $ billions of activit. This will rescue the economy! -- Paul Krugman
Service PMI slides to 6 month low due in part to the Ukraine? This is too funny,LOL> Try economic mismanagement by the self anointed 'leaders' of this once great nation.
Due to Ebola?
Yeah. Everybody is just boycotting the Malls because of the Pandemic fears.
Ebola has not even begun to impact the US Economy.
Ebola was not even in the headlines in June through September. Most were unaware and did not care.
This is fucking laughable.
I love their excuses. Reminds me of my children when they do something wrong. It is comical.
Janet, if you do not stop printing I am going to take away your TV privledges for a month. Now, brush your teeth and clean that ink of your hands and go back to your dungeon.
Ebola...... Lol.... They always find some excuse to blame for the shitty eCONomy. It can't possibly have anything to do with the fact that nobody has a job, money, insurance, and they're up to their eyeballs in debt.
Does seem a little early to blame Ebola. I say again...is there a problem Mr President?
Ebola can absolutely become an economic catastrophe however.
57 is still totally incredibly good!
The number says 2 possible things:
1. The economy is in a massive recovery, unseen in history.
2. There's a lot of hookers and drugsdealers who are bleeding the country dry.
take your pick...
There is no deflation nor can you have one with an energy boom. Prices might fall...collapse even...but aggregate demand will only increase as energy production surges.
I'm upset this morning, there's a space on ZH front page not covered by a pop up ad.
My god! You've angered the advertising Gods!!!!!
They've abandoned you!!
Turn off Java scripting and you can do all of ZH without any ads. You will most likely have to turn it back on to do the content from other websites ... but ZH is OK m this way.
I'm upset this morning, there's a space on ZH front page not covered by a pop up ad.
ZH is getting as desperate as CNBC.
Have you seen the Zero Hedge web rankings lately? It's dropped off a cliff since there has been so much click bait garbage lately.
http://www.alexa.com/siteinfo/zerohedge.com
The sudden sharp decline (as opposed to the general decline due to content quality sliding) corresponds with the introduction of the shitty popup ad that actually inhibits browsing.
Common knowledge since the late 1990s when it was all the rage: popups kill traffic (hence revenue).
Adblock is the cure....
We are a planet full of children. Even the elitists are children (I mean obviously, right? They act like self-centered spoiled brats, arranged in ego-driven packs).
Children quarrel, play games, collect toys, play make believe and the bad children may torture creatures that they view to be weaker than themselves.
When they/we grow up then we can be allowed outside of the nursery. Until then, we keep coming back for more childish games.
My guess is that the elitist-bad kids want to hide the truth of our existence from us and want us to have to keep coming back to re-do kindergarten, just like them. (camel/eye of needle)
Viewed from this perspective, the world makes a lot more sense. First we learn, then we are tested. We need to be self aware and not take the bait. It seems to be a test or our maturity.
Don't worry, be happy! It's just "soft" data.
These are purchasing managers - the only thing that matters is customers are not ordering and the excuses are more of what the customers are telling the purchasing managers. The reality is that consumers have little left over to 'consume' and no body wants to be stuck with inventory.
Actually its the drought! !!!!!!!!!!
"One American diplomat's tires were slashed. Another's personal email was hacked. Still others reported mysterious break-ins.
The incidents are all signs, U.S. officials and experts said, that aggressive, Soviet-era counterintelligence tactics are back in fashion in Russia.
The number of incidents targeting American diplomats in Moscow has increased in recent years to levels not seen since the Cold War, officials said. Taken together, they paint an escalating pattern of intimidation and harassment that is believed to be led by Russia's Federal Security Services (FSB), a successor to the Soviet KGB."
http://abcnews.go.com/International/exclusive-us-embassy-moscow-faces-co...
If the economy was healthy and balanced we would not be experiencing slow growth while massive amounts of money are being printed and poured into the system. The crux of our problem remains in the fact that both people and governments have lived beyond their means by taking on debt they cannot repay.
Over the last several decades we have created entitlement societies built on the back of the industrial revolution, technological advantages, capital accumulated from the colonial era, and the domination of global finances. Promises were made on the assumption that the advantages we enjoyed would continue in both Europe and the US. Ever greater prosperity and entitlements were to be sustained through debt financed consumption growth. In that eerie fantasy world, debt fueled consumption was to be the catalyst to bring about evermore growth. Debt does matter and the following article delves deeper into why kicking the can down the road will ultimately fail.
http://brucewilds.blogspot.com/2014/08/modern-monetary-theory-is-wrong-d...
I understand why the rate of new business growth eased to a three-month low in October and why the degree of business confidence was the weakest since July. Regardless of the message from Yellen and the media. In fact it has gotten so bad that I did not sleep well last night. I was haunted by fear and I found all the reassurances by Janet Yellen and the Federal Reserve are not helping.
Like the young boy in the movie years ago the spirits of those who once filled the world with life will not let me rest, in this case I'm haunted by dead businesses and not people. The article below concerns the cost and problems of buildings sitting vacant because of business failures. I have my finger on the pulse of small business and it is far from healthy.
http://brucewilds.blogspot.com/2014/10/i-see-dead-businesses.html