Services PMI Spikes To 11-Month Highs But Employers Remain "Cautious On Hiring"

Tyler Durden's picture

Following October's flash Manufacturing PMI spike (to 12-month highs), today's Services PMI surged to 54.8 (its highest since Nov 2015) led by the highest level of new orders in 2016. It appears the extraordinary surge in government spending in the last quarter has rippled through and spiked these surveys, notably divergen from the declines in regional Fed surveys.

Service providers noted that supportive domestic economic conditions and an improvement in clients’ willingness to spend had underpinned the latest upturn in business activity. Reflecting this, new order growth also accelerated for the first time in three months and was the fastest since November 2015. Some survey respondents commented on greater business optimism and a corresponding rise in investment spending among clients.

Despite stronger business activity growth, service providers indicated that cautious staff hiring patterns persisted in October. Measured overall, job creation picked up only slightly from the three-and-a-half year low recorded in September. While some firms sought to boost their payroll numbers in response to rising workloads, there were also reports that efforts to reduce costs had led to the non-replacement of voluntary leavers.

 

As Markit concludes,

“The latest survey data reveal a decisive shift in growth momentum across the U.S. service sector, which mirrors the more robust manufacturing performance seen during October. Taken together, the ‘flash’ PMIs suggest that the economy is growing at an annualized rate of around 2% at the start of the fourth quarter.

 

“Service providers experienced the fastest upturn in new business volumes since late-2015, which survey respondents linked to improving domestic economic conditions and signs of greater business investment in particular. That said, job creation remained relatively subdued in October, with firms reporting cautious hiring plans and efforts to alleviate pressures on margins.

 

“October’s survey findings contained positive signs for near-term growth prospects, with service sector companies the most upbeat about the business outlook since August 2015. Moreover, the month-to-month rise in this index was one of the largest seen over the past two years.”

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MFL5591's picture

Laughable games by the DC Boyz!

Squid Viscous's picture

would you like fries with that, sir?

hold on a sec, checking my Silver Plan options for 2017...

 

BabaLooey's picture

FROM THE FRONT LINES OF AN EMPLOYMENT SEARCHER

Fellow ZH posters.

I am on those front lines of employment. I need not only a job, but an HONEST "job".

A career would be nice, but in this "market", those "jobs" do NOT exist.

I'm on every swinging dick job site too. Monster, Indeed....etc. You name it. My resume is on it.

PLENTY of scams out there, and I get hired all over the place. My resume and credentials blow most all employers away.

But I don't stick. I quickly ascertain the new "job" - realize it's a scam/they lie/their "job" is NOT what they proclaim it is, then I leave/evacuate.

Got "hired" yesterday. I go in for training today. Minimum wage. I plan to quickly ascertain whether THIS job is but another scam. We'll see.

FreeShitter's picture

Just join the free shit army. Much easier on the blood pressure ;)

BabaLooey's picture

NO THANKS

That's being part of the problem.

 

SomethingSomethingDarkSide's picture

Work in Construction and start from the bottom up - Companies are ALWAYS looking to hire motivated young laborers that aren't drug addicts and can show up early & on time.  Become a Laborer, and learn the basic skills, once you can build a door frame, you can lead a team of Laborers and become a Site Manager.  From there, you could go into the office as an assistant to a Project Manager, who handles the contracts, or become an Assistant Estimator where you learn to price Architectural Drawings.

 

Both are solid careers and allow for plenty of free time and opportunity to pursue other goals while making a solid income.  If you work hard, you will be rewarded.  Keep throwing shit at that wall, amigo!

 

Benefits: Overtime offered often, learn tangible skills, build contacts

Drawbacks: Frowned upon in social circles, physical labor restrictions if applicable, 'high intensity' environment

BabaLooey's picture

Problem is, I'm 61.

Healthy (no thanks to SoeteroShit"Care"), but alas.

"Young" to me, was in the 70's.

SomethingSomethingDarkSide's picture

You'll hate me for suggesting it - Certified Nursing Assistant.

The field is DESPERATE for good laborers and would be willing to make exceptions for your lack of youthful physique.

From there most employers will work with you to build your skills and education.

Nurses make fucking bank!

Recruiters drool over the opportunity, and you usually have a choice of Per Diem with higher pay or Salary with more job security.

BabaLooey's picture

Looked into it. Not for me.

I don't have the luxury of a big personal treasury, but I do have skills. Plus, oceans of experience in the sales work place, plus building businesses from scratch.

It's about finding the right fit.

I fired the newest company today. Hired yesterday - felt funny about it. Went in today and said "no thanks".

I posted on another thread that they had managers managing managers, and those managers managed the managed.

With several brief exceptions, I've been in business for myself the last 25 years. Hard to work for someone else after that, and in today's world - holy shit!

Things have regressed to PC horse shit, cucked men, rules out the asshole, and pile driving, Bond-O/make up slapped on thunder thighed "women", and scams galore.

I am going to build a pile of cash, and strike out on my own. For that, I need some fiat rectangles however.

2 more auditions tomorrow. I'll land both of them - then audition THEM.

 

SomethingSomethingDarkSide's picture

I'm flattered that you looked into it, if you hadn't already that is,

Could make more suggestions, but I think finding things on your own seems up your alley!

It is only a matter of time with that mentality.

Cheap Side Business Ideas:

- Farmers Market Stand; selling seeds and cloned seedlings

- No Power Equipment Landscaping; charge 10% on top baking in other costs

- Yard Sale/Craigslist/Ebay Re-Selling; find some choice free/cheap items and sell them quick for a buck

I am Jobe's picture

Well said. Today most folks want to be in the office, shuffling ones and zeros and not knowking anything other than Poer Point Presentation Skills and Bull Shit their way thru life. 

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SomethingSomethingDarkSide's picture

Even worse than that - every millenial thinks that they are going to graduate as Regional Manager of their local Big Name Bank.

Almost as bad, the expectation of companies that hire thinking that they don't have to train employees and that college takes care of all the details.

The combination of these two forces is like two trains on the same track slamming into each other.

Squid Viscous's picture

"the world needs ditch diggers too, Danny!"

Paul John Smith's picture

"Cautious on Hiring"

(where have I seen that headline, every 6 months, since 2008 ...)

RECOVERY SUMMER!

https://youtu.be/Avxuxz7ORKY

PoasterToaster's picture

As long as old homes can be recycled into bank inventory.

The Real Tony's picture

All the bullshit and lies right before the election date November the 8th... to be expected.

Stanley Lord's picture

Real, I like your take on gold stocks, keep it coming.