After a disappointing manufacturing ISM on Thursday, today's ISM non-manufacturing number came in just a touch better than that coveted 50 "expansion" print, at 50.9. How credible this number is will become evident as additional economic data continues trickling in for the third quarter. If upcoming BLS payroll revisions are any indication, expect much more "unadjusted" turbulence ahead.
What was truly notable in today's ISM disclosure was the collapse in the non-manufacturing Prices Paid index, which tumbled a whopping 14.3% in its current read of 48.8 from August's 63.1. Any spin of this data point that does not highlight it for the bright red deflation warning flag it is, would be naive.