After the manufacturing ISM printed in contractionary territory a few days ago, there weren't many high expectations for today's Non-manufacturing ISM [3] number. Which is good: printing at 52.1, it was a miss to expectations of 53.0, and down from 53.7. This was the 3rd month in a row of drops, and the 3rd downside miss in the last 4 data releases. Spin: at least it was above 50. And also the employment number rose. Which of course is the last thing the market needs, because if NFP comes much better than expected tomorrow, kiss more NEW QE goodbye for a while.
ISM Services drops to its lowest since January 2010...
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Summary table:
[5]
From the respondents:
- "General state of business this month is flat, with no changes." (Construction)
- "Business is steady and an increase over last month, as we begin our peak season." (Arts, Entertainment & Recreation)
- "We are starting to experience a slowdown from the modest, grinding improvements our market areas have been experiencing of late." (Finance & Insurance)
- "Patient counts continue to be lower than budget." (Health Care & Social Assistance)
- "Business is still growing, but there has been a definite slowing in growth." (Wholesale Trade)
- "We have noticed a slowing of customer counts and sales over the last 30 to 60 days, compared to the same period last year." (Accommodation & Food Services)
- "Stable business globally, but softening backlog as clients further tighten discretionary spend." (Professional, Scientific & Technical Services)
Commodities in Short Suppl: Computer Products; Gloves; and Technical/Technology Labor.