ISM Services headline index collapsed to 51.6 (missing expectations of 53.5) to its lowest since February of 2010. We are sure many will proclaim this as "weather-related" but remember the strong performance of the Manufacturing print. Respondents worried about weather, Obamacare, and oil prices... as the employment sub-index crashed from 56.4 (highest since Nov 2010) to 47.5 (lowest since Mar 2010) - the biggest drop since Lehman!
Big miss and lowest print in 4 years...
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ISM Services Employment craters...
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And before you blame the weather, the Manufacturing and Services data do not converge on that opinion...
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Respondents worried about weather, Obamacare, and oil prices...
- "Steady — trending slightly lower." (Finance & Insurance)
- "Economy still plugging along, but at a very slow rate of growth." (Professional, Scientific & Technical Services)
- "The Affordable Care Act is creating significant financial uncertainty to healthcare organizations. With little warning, the negative impact on revenue has been unprecedented." (Health Care & Social Assistance)
- "Passage of the federal budget and subsequent funding appropriations are allowing government agencies to start spending funds on planned new projects." (Public Administration)
- "Oil prices continue creeping upwards along with chemicals." (Utilities)
- "Cold winter weather has had a major affect on us when compared to year-over-year." (Wholesale Trade)
- "Winter weather is slowing down our projects; it should only be until April." (Construction)