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US Services Economy Surges To 7-Month Highs (As Manufacturing Hits 2 Year Low)
Following US Manufacturing PMI's tumble to two year lows, amid slowing new orders and employment, Markit reports that US Services PMI rose to 56.5 - its highest since April. Amid a solid increase in job creation (low-paying compared to the job weakness in manufacturing) and improvement in business growth, the divergence between Services & Manufacturing is at its highest since Q3 2013 which presaged a complete collapse in Services.
Does 2013 ring any bells?
Commenting on the flash PMI data, Chris Williamson, chief economist at Markit said:
“The US economy is showing further robust economic growth in the fourth quarter, with the pace of expansion picking up in November.
“The upturn in the flash PMI brings the surveys up to a level indicative of 2.3% annualised GDP growth in November, up from 1.8% in October.
“The surveys therefore suggest the economy is on course to grow by just over 2% again in the fourth quarter, providing additional reassurance on the strength of the economy after yesterday’s GDP revision. The revision to official GDP annualised growth from 1.5% to 2.1% has brought the official third quarter growth rate into line with that signalled by the PMI.
“Hiring remains healthy, albeit down on the trend seen earlier in the year. The November survey results are consistent with a non-farm payroll rise of approximately 180,000, down from an average of just over 200,000 in the first ten months of the year.
“The faster pace of growth and healthy hiring trend were accompanied by the sharpest rise in average selling prices seen for four months, providing a triple-boost to the chances of the Fed hiking interest rates at its next meeting.”
Charts: Bloomberg
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Laughable!
Woo, hoo!!! More part-time bartenders. Can't have a BOOMING economy without a lot of heavy drinking...
not corrupt!
they just print whatever numbers they want to justfiy their means to an end
“Let me be clear that negative interest rates was not something that we considered very seriously at all today. It was not one of our main policy options under consideration..." Ms. Yellen said.
They must have hired more greeters at Walmart.
You know what I noticed yesterday, while walking around in a Home Depot? Of every employee wearing a safety orange apron out on the floor, every one I saw looked over 65 years old. I wondered why they were hiring these guys instead of young people in need of their first job? Then I realized it: The old folks were sacrificing themselves for the Home Depot's success. Think about it: they deserved retirement, but became captives of a failed American system. Government promises, which turned out to be lies. Home Depot takes advantage, as a large corporation does these days, and benefits because they see how much better these workers are in several areas: knowledgeable, reliable, trustworthy, honest, even tempered, responsible, used to interfacing and socializing with people in a real way (face to face reality). Home Depot benefits because these people need little training, appreciate the job, can be counted on and trusted to produce the required results instead of excuses, etc.. They are in effect, squeezing the last drops of blood out of the fading traditional American worker. If this isn't an indicator of a failed state, I don't know what is.
I've noticed that too. At the other end of the services spectrum, would be some of the older department stores. Recent experience at Macy's was an eye opener (I rarely go to a department store but we were picking up some housewares). Retail clerk was a 20-something female who didn't care much for the people she was dealing with. At the register, she didn't acknowledge us, just starting grabbing merchandise to scan. Sniffing repeatedly until she finally wiped her nose on her arm. Had trouble working the register and had to seek assistance of the older employee. No "Thank You" when finished. I feel bad for my kids and what kind of economy and society they will have to survive in.
Been to a Sears in the last year? I've seen Funeral Homes that were more lively and upbeat.
My dad stole my son's job at a McDonald's drive-up window :(
Markit is nothing but a FED lackey. Their numbers become more laughable by the month....
Buy the dip...always works. Fed has your back. Easy money.
US Service Economy Surges!
Great! Now even more young adults can continue to live with their parents.
bartender giving you 2 mugs of beer instead of 1
yeah,your that thirsty
Things will be better than ever when the bulk of the population focuses their expenditures on alcohol and food, which is what the US has continuously geared up for. One big, happy party! Liberalism works! We have arrived!
Companies use re-org to fire higher wage and re-hire at lower.
Seeing this w/o the lay off rate doesn't really show anything but then again companies that provide severance would skew the numbers some.
Go out for pizza or have a BigMac attack,you're helping the service sector.That's the speed of the recovery.It's all low paying crapola slavery. John McCain and all the Neocon Warmongers sold America out to Communist China to help finance the $19 trillion dollar deficit and send American jobs overseas.Then you see McCain pictured with his CIA so-called moderate terrorists funded by CIA drug money from Afghanistan and the same groups have links to the same Saudi Arabia organisation behind 911.It's a very sick world in Washington and the Neocons think they are above the law.Topit off,Obama meets with the King of Saudi Arabia who is the world's largest supporter or terrorism and human rights abuses.Obama is nothing more than a cheap CIA whore.
It's been doing wonders for healthcare, no?
The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.
Friedrich August von Hayek
Little do they know that despite all their rosey hopes and predictions, it still might snow unexpectedly this winter, causing a drop in business.