US Services Sector Slumps As New Orders Crash Most Since Lehman

Confirming the mixed picture from Markit (Manufacturing PMI up, Services PMI down), ISM Services printed a disappointing 55.9 (57.6 exp), dropping to a 4-month low (as ISM manufacturing rises).

 

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Perhaps most notably, New Orders have utterly collapsed in the last 2 months post-Hurricanes...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180105_ism1.jpg

Additionally, Business Activity fell, as did backlogs...but there is quite a difference between manufacturing and services surveys...

 

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Respondents remain mixed:

"Many suppliers are proposing price increases, but few are being implemented. Increases in volume and efficiencies seem to be outperforming commodity pricing." (Accommodation & Food Services)

"December is slowing, as is seasonally expected after a strong fall. Business in general is strong [and] within the normal pattern of seasonal fluctuation." (Management of Companies & Support Services)

"Lumber prices are increasing due to product [being] damaged in the recent wildfires. Duties on steel from Vietnam is expected to cause an increase in steel prices. Ongoing shortages in construction related [to] labor continue to be a problem." (Construction)

"Ending the year with profits and business levels on track. 2018 is projected to be as productive with an optimistic outlook." (Finance & Insurance)
"IV solutions are still on national manufacturer back order. Hospital gauze back orders are also causing issues in the industry." (Health Care & Social Assistance)

"We are seeing a resurgence in the business activity of our oil and gas customers, in a positive direction that is impacting our sales." (Other Services)

Comments

Yellow_Snow Jan 5, 2018 10:41 AM Permalink

None of these stupid reports have any impact on stawks...

People don't care...  reports are all lies anyways... everyone knows that now

They just want to get out of fiat currencies...

Ink Pusher Jan 5, 2018 11:09 AM Permalink

2018 Forecast =CAUTIOUSLY PESSIMISTIC

  Commodities Prices are on the rise overall and will continue to rise throughout the year...

Real estate in will flatten out and drop off sharply by year end.

Financials are long overdue to take a major hit by Q3 .

  Oil + Crypto will continue to set new volatility records.

  By Q4 ..The USD will be the hottest dump along side junk bonds and preparing for abdication as the WRC.

  Arms sales are booming,Bonds are tanking,everything else is either hyper-inflated and/or ridiculously over-valued. 

  Multiple military conflicts and engagements with a high likelihood of all out war on at least one front and as many as three will prove to be more than a muted stress test.

  This year will play out as a war of political attrition,heads and asses will be rolling down off the hill in record numbers as most of the meat puppets are being forced to pick sides have their backs put against the wall and the rest are scurrying for dark corners like cockroaches to avoid prosecution.

My Take:

Stacking and watching is a much safer bet than joining all the lemmings as they march on towards the edge of the abyss.

 

 

rejected Jan 5, 2018 12:45 PM Permalink

Growing up the retailers were doing their damn best to make shopping easier. Outdoor / Indoor Malls,,, more inventory etc.

Today they're doing their damn best to make shopping a pain. Go to Sears, J.C. Buck,,, Macy's,,, wanna buy something,,, you have to have them order it OR they'll tell you to go online. And they ALL SELL THE SAME FOREIGN CRAP.

A few months ago I was in the market for a Lawn Mower. Went to Sears. Found a display model I wanted and.... was told I had to order it. Loved Craftsman tools,,, Today Junk,,, all made China.

Even Harbor Freight! They underwent a massive reorganizing of the store. Had most of it out in the parking lot. When they were done they had reduced the size of their store by a full 1/3. Considering 1/3 was already being used to store products in the back, they now have 2/3rds of the store mostly empty and have drastically reduced overall inventory. Most of what they used to stock, you now have to order and pay UPS ransom shipping. 

We used to go out and make a day of shopping. Today the most we can get is about 2-3 hours then back home. Only available stores are Home Depot, Lowe's, Walmart and of course Sears, JC Buck. The last two going OOB as fast as possible. Home Depot and Lowe's are funny. Same products, almost the same layout. We call them Lowe's Depot.

And then there's dining out. Every restaurant in the area sells frozen, reheated crap. Went to the last place we had that served a decent hamburger. They went like the rest,,, frozen meat cooked in a deep fryer. You can always tell,,, They're crunchy.  Only time I see good business at restaurants are on Sundays after church. Apparently they'll eat anything after the sermon.

All retail are eliminating employees. If you don't use the Kiosk you get dirty looks. Next, they'll stop taking cash like many others. UPS, ATT comes to mind.  Can you believe it! Companies whining they can't make money, refusing cash. Unbelievable. 

Thanksgiving, Christmas. You couldn't tell in the stores! Only the 'Seasonal Area' gave any indication of a holiday in progress. As a child I couldn't wait for Christmas to go to Sears, Monkey Wards, JC Buck to see all the train displays, the remote controlled airplanes, rockets, Chemical kits, Radio Shack Kits, models of all sorts, Tonka toys, Toy Clocks, dolls, and of course Santa. Most all gone today because someone might be offended or claim it's White Privilege. Except for very few retailers even Lionel Trains are online only and many of its products are made in China. All other train sets are made in China. Even the biggest Toy store of all has died. Toys R' Us had all the above plus electronic kits, computers. My first TI99/4A was purchased there. Gave a grand for it and some accessories. Computers in that day were fun. Magazines with programs you could type in, information how to make thing work Cartridge games and no internet needed or wanted. Today the most you can find is antivirus software or maybe Microsoft Office Junk. Even Atari is online today.

The only retail area where you can get a decent choice is Autos. I can't drive a 1/2 mile without seeing 1 or 2 used cars dealers. They're like a rash all over the city.

I really pity the younger generations and the generations yet to come. There is no fun in the world. Only name calling, accusations, politics, wars, and talk of wars. 

As the Emperor would tweet.... So Sad!