Manufacturing Leads, Services Follow: ISM Collapses To Weakest Since March 2014 As "Pace Of Hiring" Slows
As goes US manufacturing, so goes US services. In a narrative-crushing print, US Services PMI dropped to 54.3 - the lowest since January 2015. Output and New business growth slumped to 11-month lows, optimism dropped, and input cost inflation continued to moderate as "suggests the pace of hiring has slowed since earlier in the year as businesses have become more cautious." Then, confirming this plunge, ISM Services printed 55.3 - its lowest since March 2014 as unadjusted new orders collapsed to their lowest since February 2014.
Sevices PMI tumbles...
Catching down to Manufacturing (who could have seen that coming?)
“The PMI surveys show the service sector losing momentum alongside a stalling of growth in the manufacturing sector, pushing the overall rate of economic expansion down to the weakest for a year."The survey also signals robust employment growth, but likewise suggests the pace of hiring has slowed since earlier in the year as businesses have become more cautious in the face of worries such as the forthcoming elections, the strong dollar, global growth jitters and the outlook for interest rates. The December survey data are consistent with non-farm payrolls rising by around 175,000 compared to an average of 200,000 in the first eleven months of the year.
And then ISM hit...and it was a disaster - crashing to levels it was last lower than in March 2014...
Unadjusted new ordrs plunged...
WHAT RESPONDENTS ARE SAYING...
"Business continues to be strong for consulting/operational outsourcing of real estate operations." (Management of Companies & Support Services)
"Professional and skilled craft labor is difficult to find." (Construction)
"Continued downturn in global energy pricing has given way to reduced costs from vendors." (Mining)
"We see continued spend demand higher than any months of this year; however, productivity reaches its peak and projects have to be carried over to 2016." (Professional, Scientific & Technical Services)
"Holiday shopping volume is in line with forecast." (Retail Trade)
"Currently very busy in the holiday rush season. Purchasing of supplies, postage & freight, and direct labor all more than double non-holiday periods." (Transportation & Warehousing)
"The supply chain is faster than in previous years and equipment is more readily available." (Wholesale Trade)
"Construction projects continue at a record pace." (Educational Services)
* * *
It would appear the "yeah but The Services Economy will save us" meme just collapsed - so what next?
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ISM services are still solidly above 50, so expansion quite intact, Zero Hedge ne'er-do-wells.
wrong, new ZH troll of 2 weeks now.
Schiff will explain for you in his latest podcast...but I doubt you will learn anything or care to anyway.
https://www.youtube.com/watch?v=pC64JF7N8cs
"ISM services are still solidly above 50, so expansion quite intact, Zero Hedge ne'er-do-wells."
The trend is your friend ...
admittedly the trend could keep better company.
LOL! Define "services"....
How much of our GDP has become nothing but useless fucking paper-pushing?
Let me be clear;
In the modern financial/monetary system bankers/financiers are nothing but overcompensated middlemen stuck between the printer/computer (where "money is created with NO real work) and the producer/consumer in the real economy.
They BUY congress to maintain this privileged position.
It is in fact time to EXECUTE the middlemen!
Only then will there be any recover.
Party time!!!
Bullish ...
https://www.youtube.com/watch?v=VlVmdGiAH2A
Must be all of those new ATF agents Obama hired yesterday.....Zandy got a hardon number....
Transportations tell the story. Their correlation to the S&P is sinking further and further, just as it did before the collapse in August 2015. Since it is nearly impossible that transportation stocks will rise a lot in the next future, the S&P has to follow downwards to re-establish the near-100%-longterm-correlation.
Uh. 54.3 means growning. Under 50 = shrinking.
Here it is for the retards:
Services follow manufacturing.
That was how it was done. In the new e-con-omy, we do the following:
1) Close the factory, fire the workers.
2) Factory re-opens in China after re-engineering product.
3) China tries to make and sell the crap, but finds little to no demand.
4) We appoint Fed talking heads to print trillions to artificially keep rates low to support a skyrocketing debt, prop-up a falling stock market, and tell us that we have green chutes.
5) Repeat steps 1-4 until the whole thing comes crashing down.
US has manufacturing , who knew. WTF does US manufacture other than to dstroy others and it's own people
Not so fast, we are working on the seasonal weather adjustments now. After we're done, you will see rainbows coming out of the unicorns' asses once again.