ISM Non-Manufacturing: A Mixed Bag

Posted 2011-09-06 11:33
by Karl Denninger
in Macro Factors

Boy that was good for a nearly-20 handle ramp job in the S&P - which all came back off, and now we're trying it again.....

The report was issued today by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee. "The NMI registered 53.3 percent in August, 0.6 percentage point higher than the 52.7 percent registered in July, and indicating continued growth at a slightly faster rate in the non-manufacturing sector.

So the headline looks ok. But what about the internals?

Well, there we have some mixed news. Most-particularly employment growth slowed materially and prices continue to ramp in rate of increase. Neither of those is good; to balance however one must account for the new order improvement, better delivery performance from suppliers and a slight improvement in the import/export balance.

Overall the report is pretty good in the services side and leaves one to wonder if the only jobs left in the country (given the horrid regional manufacturing surveys) will soon be those in which one's primary function is to ask "would you like fries with that?"

Nonetheless, the market appears to have taken some solace from the number and didn't immediately blow up and extend the losses that were taken over in Europe and Asia.

How this will play for the remainder of the day and into the rest of the week remains an open question.

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