This page has been archived and commenting is disabled.
"Services Will Save Us" Meme Collapses As Non-Manufacturing PMI Plunges To 2015 Lows
While correlation is not causation, one would have to be an ignorant unicorn-worshipper to believe that a collapse in America's manufacturing would not have some follow-through. Following the crash in Manufacturing, Markit reported America's Services economy massively missed expectations and plunged to 53.7, lowest since Dec 2014. New orders plunged to the lowest since January 2015 and employment tumbled. As Markit reports, this is "disappointing news for an economy which has seen the first US interest rate hike for almost a decade."
Commenting on the flash PMI data, Chris Williamson, chief economist at Markit said:
“A lack of inflationary pressures, slowing growth and a drop in business confidence to a five-year low are all disappointing news for an economy which has seen the first US interest rate hike for almost a decade. The Fed projections point to a further four quarter point hikes in 2016, ut with data as weak as these, we’re likely to see a far less aggressive rate hike progression.
The survey data are consistent with gross domestic product rising at an annualised rate of 1.8% in the fourth quarter. That’s down only slightly from the 2.1% pace observed in the third quarter, but the survey shows a more severe slowing towards the end of the fourth quarter, with an annualised GDP growth rate of just 1.4% indicated for December alone.
Hiring remained encouragingly resilient in the face of the weaker growth trend, pointing to a non-farm payroll increase of 170,000. That’s below the average of 201,000 signalled in the preceding 11 months of the year (and below the official year-to-date average of 210,000), but still strong.
However, with business expectations about the year ahead dropping in the service sector to the lowest since August 2010, the sustained growth of hiring may soon peter out unless demand revives.”
Charts: Bloomberg
- 17 reads
- Printer-friendly version
- Send to friend
- advertisements -



so now that we've hiked...is bad news bad news again? or is bad news good news because the FED might reverse? Or is....
When a ship sinks, all the people get wet, not just the passengers in first class.
Service economy = shuffling dollars made by manufacturing economy.
+++++
The US is becoming a standard third world economy.
Resource extraction, agriculture, a service economy to sell food and cheap foriegn made goods, and transport to move this stuff.
And a bloated government parasite class.
And the people in first class are the ones most likely to be in the life boats.
exactly...the market has been on a sugar high for almost a decade and now the FED is slowly taking away the candy!
More like cocaine high.
Just invert the trend line and it's all shiny forever......
Did some shopping at a major department store yesterday afternoon. Seemed like the only staff in the store were the register clerks. No sales staff on the floor at all - in any department. I had several questions, but there was no staff to be found. The week before Christmas? Crazy!
Yet even my local rag newspaper has a headline that claims Local Business Is Booming...
Such bs.
Wow, you still have local newspapers...how 20th century!
it's a BS rag for sure...MSM all the way.
Are there mushroom clouds too?
Unfortunately no, but the city built expensive apartments (Nobody are renting) on the top two floors of some new building downtown...population 14,000...view of the Fire Station, Railroad tracks (train every 2 hours), and the local bank...
Yeah, my local government wants to build a new baseball stadium to house our unicorns, plus revive 'downtown' for the 20th time in fifty years......
In Michigan it is called the Downtown Development Authority (DDS).
They have destroyed my downtown many times too...
BS stores nobody can afford to shop at...bars, restaurants, yoga schools (WTF, this is a PBR swiller town), coffee shops, jewelry stores, and so on...
EVERY darn city and town I've been to seems to follow the same "plan" for downtown revival, so it must, the DDS have some central gov/org source and an evil one at that.
Kalamazoo, MI did the same stupid shit...19+ bars, $1200 a month apartments, yet nowhere to buy groceries for two miles!
Of course the services economy will save us. Drugs and prostitution for everyone!
When I was in Nevada, even the whores were having a tough time...
Who needs services or manufacturing to drive an economy?!
WHEN YOU'VE GOT A VIRTUAL ECONOMY, YOU DON'T NEED ANY OF THAT CRAP!
An idea...
Instead of Sim City (an addictive game BTW)
Somebody should develop Sim Economy...
Oh wait, the FED beat me to it...
Can't envison what data the Yellen and her group were looking at to raise rates? This shit is truely laghabale to think a few unelected Jewish bankers can do whatever they wish with the US economy is downright dangerous.
The rate hike is not the problem, the low rates to begin with are the problem.
#fedratehikenotwinning
Service THIS Obama.
OT, but what the hell is happening to the VIX?
Totally looks like "the final spasms of a dying bull market" (as David Stockman coined it)
Gartman,
How's that modesty treating you?
P.S. Still long I presume?
I can attest to the fact that here in Montreal, not one fucking ad for retail sales on any job boards...NOT ONE ! I remember a time not to far back when you could easily find a temp job for the Christmas season in a department store or any number of small or medium size retailers...but this year, nothing! That pretty much tells me where retail stands. By the way, if it sucks this hard pre-holidays, I just can't bear to imagine what it's gonna look like in January!...
Here in SE Michigan, it's the same. I'm waiting for the post holiday REALITY to arrive and dreading it.
People here have really embraced a blissful, delusional, haze...
No wonder somebody,s shooting at motorists on I-94.
Uhg, again!?
It is still hunting season though, and the stupid deer love hanging out by the highway...
Yeah, services, that and what I call Excess Scoring of US Consumers. Many companies found it is easier to "score" and sell the query results about US citizens rather than create jobs for us. It's a $180 billion dollar a year business. All they want is your data, so sure you can go work some low paying service job and just fork over your data.
http://ducknetweb.blogspot.com/2015/09/excess-scoring-of-us-consumers-us.html
so those waiters and bartenders are not reporting their tips again.....cash is king....who needs to pay taxes with Obama taking care of you...
In 1968, a burger flipper had to work about 20 minutes to buy the Big Mac. Today, the burger flipper has to work about 40 minutes to buy the Big Mac. And forget about burger flipping your way through college. So no, low paying service jobs will not save us today.
A relative of mine has a collection of German porcelain coins made during and after WW I. Any of his individual coins are worth way more than a US dollar now. He won't sell because of he's a collector and a history buff.
I was thinking about those coins and I got to thinking about the information theory of money. Basically money is considered information. It will have a value stamped or printed on it. When information becomes corrupt money loses value unless the information is on something that will have an intrinsic value. Now days all the institutions lie so much that nobody believes anything. Soon even the value of a gold plated tungsten coin will be worth face value at least.
If not raise interest rate, fed creditbility will be greatly damaged but under table they will inject extra liquidity to easy pains in the market. They will not "pull it" when dollar is strong and everybody is hoarding cash.
Facebook will become "Fadebook".
That is inflation of one whole letter.