Goldman With The Spin On The Services ISM Miss

Because we still do have (faltering) economic data in addition to all the rumors out there.

Slower Growth, More Jobs

BOTTOM LINE: Slightly weaker news on nonmanufacturing business activity, with slower activity but more jobs. Factory orders a touch better than expected


ISM non-manufacturing 52.9 for October vs. GS 53.0, median forecast 53.5.
Factory orders +0.3% (mom) for September vs. GS -0.4%, median forecast -0.2%.

1. The nonmanufacturing ISM index eased to 52.9 from 53.0, a bit weaker than expected. Both the business activity and new orders indexes fell sharply, although in both cases these declines were mainly a reversal of unexpected gains in prior months. Counter to these declines, the employment index recovered substantially from 48.7 to 53.3, the best reading since June. Overall, we view the news as just slightly weaker than expected.

2. Factory orders rose slightly in September, against expectations of a slight decline. Some of this was due to an upward revision to durable goods (including the core nondefense capital goods ex aircraft series).


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