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US Services Economy 'Solid' In August - Signals September Hike Back On Table
Markit's US Services PMI printed a healthy 56.1 for August, rising for the 2nd consecutive month, comfortably beating expectations and giving The Fed more ammo for a September hike. This rise was achieved despite the weakest rise in new work in 3 months. While Markit notes that this headline print suggest 'everything is awesome' it suggests the need for more stimulus just in case, as prices are falling. Following the dramatic spike in the July ISM Services to 10 year highs, it dropped back modestly, thanks to slide in New Orders, with an August print of 59.0 - still the highest since Nov 2005, again offering no excuse for The Fed to stay on hold.
ISM Services hover near 10 year highs..
New Orders slipped however...
And the breakdown shows most of tyhe sub components slowing...
And US Services PMI rose for the 2nd month in a row...
As Markit notes,
“The US economy is enjoying a solid third quarter, with robust survey readings so far pointing to 2.5% annualised GDP growth. Employment growth is also holding up well, with PMI surveys signalling another month of non-farm payroll growth in excess of 200,000 in August.
Roughly translated means - The Fed has no excuse NOT to hike rates. But...
with the survey data showing average selling prices for goods and services to have fallen in August for the first time since 2010 and global economic concerns intensifying, the balance could easily tip towards the need for more stimulus.”
So - in other words - everything is awesome but please add some more stimulus anyway!!
Charts: Bloomberg
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It's a pity the table which the rate hike is now back on was made in China from something highly flammable.
<== Hike's on the table, Yay!
<== Hike's OFF the table, Yay!
NFP just might be the deciding factor tomorrow....
What I said..
The Feral..
Oh forget it...
If some 2 millions of new students all on a sudden enroll for "modern theater in ukraine" on student loans - will then a september rate hike be baaaack on the table again - because, ya know, free shit driven services are booming?
Whatever.
Data? What data? Nothing to see here. TBTF banks like ZIRP. Increases in IR are all talk.
Yellen jizzed in her pants...
"The US economy is enjoying a solid third quarter" ???
Stop using CNN for your data and get out of the gated community once in a while . . .
Yellen is squirming and leaking as she is desperate to raise rates, mandates be damned.
'Services' is badly misunderstood, but they can be used to push an agenda. Yellen has to be seen doing SOMETHING, even it doesn't really do anything......
Yellen neads a Magic 8 Ball to give her answers so that we can continue our march off the cliff.
I hate that word "robust". Its just annoying.
So the rate hike is "back on the table" and the *markets* zoom higher on this *data*, too.
Who said you can't have your cake and eat it too? Mr. Yellen would disagree with that.
Tyler when Markit gets posted here can you at least put "SARC" after the headline.
Do it Yellen. We're calling your bluff bitch.
Yup, 2% would be a good start.
It's on, it's off, it's on, it's off, oh, it's back on again.....all this speculation and debate over a pathetic, tiny rate hike says it all about the real state of our economy.
The only reason we hear about rate hikes is that it keeps the idiots faith in the system. However the system is a ponzi and it cannot be tapered so wake up people...it will never happen.
Why do they even publish that word services. Everyone knows it means financial FRAUD.
"US Financial FRAUD Economy Solid in August"
.25 isn't going to do squat to protect the $dollar at this stage. They might as well be talking to themselves because the big move is already in motion.
This means what? That waitress and bartending jobs are reliable, solid performers?
http://img.pandawhale.com/116241-that-dont-make-no-sense-gif-Im-2m0g.gif...
Coming soon to a bank near you... No more cash! Negative rates! Buy stawks!