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US Services PMI Tumbles For 5th Month As "Domestic Demand Weakens"
For the 5th month in a row since the record-breaking June highs that proved the recovery narrative was working, US Services PMI dropped. At 56.2 (missing expectations of 56.5), this is the lowest in 7 months. As Markit notes, this is a problem, since "whereas the manufacturing slowdown was largely linked to weaker global demand and a renewed fall in export orders, moderating growth in the service sector is a sign of domestic demand weakening." This points to a significant slowdown in GDP growth to a mere 2.5% from a hopeful 3.9% in Q3.
Commenting on the PMI data, Chris Williamson, Chief Economist at Markit said:
“The final PMI data confirm earlier flash readings that the US economy is likely to have slowed further in the fourth quarter. GDP looks set to rise at an annualised rate of 2.5%, down from 3.9% in the third quarter.
“Whereas the manufacturing slowdown was largely linked to weaker global demand and a renewed fall in export orders, moderating growth in the service sector is a sign of domestic demand weakening.
“The concern is that, with new business across manufacturing and services collectively growing at a much reduced rate compared to the summer months, companies could become more hesitant in taking on staff unless demand picks up again soon.
"However, at present, the slowing is still only modest, and leaves the economy growing at its approximate long-term trend rate. Importantly, growth is also sufficiently strong to create new jobs in impressive numbers. The survey data remain consistent with another month of non-farm payrolls rising by at least 200,000 in November.
“Price pressures have meanwhile fallen, meaning policymakers can enjoy a ‘goldilocks’ scenario of robust growth and low inflation, providing greater leeway to hold off with raising interest rates.”
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The Election is over.....that is why these numbers are bad now
You mean to tell me we were lied to!?!
sarc off//
the obama facisti regime motors on for at least 2 yrs ,then we will pay...and blame bush
a number over 50 is good
A number that revealed reality would be more useful.
And the S&P climbs higher!!!! I am at witts end with this!!!!!! Makes NO SENSE AT ALL!
It makes perfect sense if you are being decieved...
purposefully.
American exceptionalism backed up by massive illegal buying by the Fed. An empire needs a booming stock market to fund all its wars.
No rate hike ever. This is slowly sinking in.
However, my breakfast now comes with a fine single malt scotch.
"No rate hike ever. This is slowly sinking in."
I know. I'm thinking I might lose my sandwich bet to Doc on this one.
Only try to realize the truth ... there is no free market.
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GDP is -2.5% at least, fucking PONZI.
The elections are over, and this can all be shifted over to the incoming crew as their mess - I see the advertising as "See? You had it so good, why did you ever let ___ into power?". And so it goes. Freeking Vonnegut.
Wilderness house of pain, makes no sense of it all
Close this mind dull this brain, Messiah before his fall
What you see is not real, those who know will not tell
All is lost sold your souls to this brave new world.
-Iron Maiden