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US Services Economy "Bounce" Dies As New Orders Crash Most Since Lehman
On the heels of China's, Japan's, Brazil's, and Europe's Services PMI weakness (and US Manufacturing PMI and ISM weakness), Markit's US Services PMI printed 55.1 (missing exectations of 55.6) and dropping to its lowest since June. This catch-down to Manufacturing weakness suggests the mid-year bounce is well and truly dead as even Markit admits, "it remains unclear as to whether growth will weaken further as we move into Q4." Additionally, after its exuberant spike to 10 year highs in July, ISM Services continued to drop back (to 56.9 missing expectations) .
Services (blue) appear to catching down to Manufacturing (red) in the ISM and PMI surveys...
After spiking to 10-year-highs in July, ISM Services continues to slide back to reality. Even after adjustements ISM Services is ugly...
While employment rose modesly; prices paid, inventory sentiment, and business activity tumbled...
But New Orders crashed... most since Lehman
Just remember:
- *ISM’S HOLCOMB IS HOPEFUL MANUFACTURING IS NEARING BOTTOM
So hope is what we are waiting for.. that could be a problem.
On the inflation front, average prices charged decline for the second month running, which represented the first back-to-back declines in output charges since the survey began six years ago.
Looking ahead, service providers are optimistic about the business outlook, but the degree of positive sentiment dipped to its second-lowest since June 2012
The US economic growth slowed in the third quarter according the PMI surveys, down to around 2.2%. But this largely represents a payback after growth rebounded in the second quarter, suggesting that the economy is settling down to a moderate rate of growth in line with its long term average.
Hiring also remains relatively robust, albeit down from earlier in the year, again suggesting that the economy has shifted down a gear but remains in good health.
At the moment it remains unclear as to whether growth will weaken further as we move into the fourth quarter. However, with inflationary pressures waning, policymakers may have some breathing space to gauge the extent of any slowdown. Lower fuel costs helped push average prices charged for goods and services dropping at steepest rate for nearly five years.
The bounce in Q2 is over...
Charts: Bloomberg
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Hope and Change, baby! Can we get a 3rd Obama term - just to make sure the last nail is driven into the American coffin?
Please don't give them any more bad ideas. They've got plenty of their own already.
The world economy is somebody else's problem since it's well known on Wall St. that we don't export goods or services overseas, plus all this Keynesian economics that guarantees all the pent up demand. Truly, we live in an age of miracles.....
#MSL
350000 people leaving the workforce in the last employment assessment cannot be a good thing. Ever.
Steven Moore was on the radio this morning and said the "experts" can't figure out what is going on.
Just continue to get ready for something completely different.
The best form of protest is civil disobedience, I have not worked in 5 years. Under the table or barter only. Withholding labor is my protest against a fascist country! Am sure many are doing the same.
Labor = real gold they won’t have from this former slave.
B-B-B-Butttttt the market is soaring ...
But, but, that gasoline savings is due to hit any time, and the consumer will spend us back to prosperity in Q4...Christmas is right around the corner.
I hear helicopters....
Those are gunships....
I have missed you "SINCE LEHMAN GUY".
Who the fuck needs sound funderrmentals when you have CTRL-P
Once again: >50 = GROWTH.
You can argue that it's sham stats, but do not tell us that slower growth is the same as a "crash." It's not, and it damages Tyler's credibility everytime s/he/they says so.
In other news of the Service economy and dying:
http://www.scmp.com/news/hong-kong/article/1863953/homeless-woman-found-...
600 dow points in 24 hours....nothing and i mean nothing would give me greater pleasure than to see the btch reverse
ton of new restaurants opening in swfl, as well as construction purring along. both lagging indicators. another 10% lower spx should put an end to all that 'wealth effect'. there are more seats in restaurants than the total population....