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US Services Economy Tumbles To Weakest Since Weather-Crushed January
In January when Markit Services PMI printed 54.2, the weakness was blamed on weather (and port strikes). Now it is sunny October, following the warmest September ever on Earth, and Services PMI has plunged to 54.4 - its lowest in 9 months (handily missing the 55.5 bounce expectation). This flash data shows the weakest payroll numbers since February and business confidence remains just marginally higher than the three-year lows of July. As Markit warns this weakness "will add to calls for policymakers to delay hiking interest rates until the economy finds a firmer footing."
Commenting on the flash PMI data, Chris Williamson, chief economist at Markit said:
“The flash services PMI came in below market expectations in October, indicating a steeper than anticipated slowing of the economy as it entered the fourth quarter. Combined with the manufacturing results released last week, the services PMI survey indicates that the pace of economic growth slowed in October to the weakest since January, when business was hit by extreme weather.
“The surveys suggest the economy started the fourth quarter expanding at an annualized rate of 1.8%, down from the 2.2% pace signalled for the third quarter.
“The warning lights are also flashing brighter in relation to the outlook. Business optimism slipped to one of the lowest seen since the global financial crisis, and employment growth fell markedly in October.
“With the survey also finding price pressures to have remained subdued, especially in terms of wages, the sharper than expected slowdown in October will add to calls for policymakers to delay hiking interest rates until the economy finds a firmer footing.”
Charts: Bloomberg
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In other news, Bitcoin is doing great
fuck bitcoin and fuck bitcoin shills
hahaha, you haven't missed the boat yet...so don't be angry
ya ya...a currency based on processing power...we already have a stock market based on processing power...
not surprised by your response. Typical ignoramus response that I have heard all too often over the past few years...even before Bitcoin broke the $1 mark
All I see are the same mechanics that drove the beanie baby craze. A small market of people looking to get rich by driving up the price of block chains that don't cost anything to make by selling them to each other.
Another excuse so rates can't go up.
Printing and debt to the max. A much larger QE4 is assured.
if you're walking on quicksand how can you find firmer footing ?
The shit never stops flowing down their chin
Funny things happen when you fuck with the time value of money for 6 years straight. Not "ha ha" funny. More like "oh, shit" funny.
Now I've said that before, but let me give you an example of one of those "funny" things. Overcapacity can hang around essentially FOREVER. It doesn't need to be productive if you can string it along with endless non-compounding 0% interest borrowed money.
Want another? OK. What's the carry cost on excessive inventory when you can float it at 0% interest?
It's like a world where nobody ever dies. Sure, for a while it's nice to have Grandma and Grandpa around for a few more years, but after a while things get damned odd. Tons of incredibly old, sick people not dying, just suffering endlessly. People in horrible disfiguring accidents that need to be cared for but never die. (Think: "Extreme Japan".)
If you think that's fun, wait until NIRP. I've got a whole different metaphor for that one.
All of this has been building for a long time. Currency regimes only last for so long. And the last bubble is always in money itself.
Here's the important thing: still expanding! /s/ Bob Pisani.
It's the fall foliage...keeping "consumers" out of stores. I smell a hefty seasonal "adjustment"...for...leaves!
It was the Hurricanes from Global Warming that caused it....not the fraud of Wall Street and the FED