US S&P Global July Services PMI Contracts to 26 Month Low 47.0 as Economy Shrivels

The key S&P Global July US services PMI collapsed to 47.0 vs 52.6 expected to a 26-month low., prior was 52.7 as growth for the services sector collapsed. The service Sector accounts for over 80% of the US GDP.  Services industries many supply chain disruptions bringing inflation risk and challenges with labor and product. The Flash US PMI Composite Output Index came in at 47.5 (June: 52.3) a 26-month low. The Flash US Manufacturing PMI was at 52.3 (June: 52.7) 24-month … Continue reading “US S&P Global July Services PMI Contracts to 26 Month Low 47.0 as Economy Shrivels”

ISM Non-Manufacturing Activity Slows for Third Straight month in June

The ISM Non-Manufacturing Index for June fell to 55.3% (consensus 54.2%) from 55.9% in May, slowing for the third straight month as businesses continued to wrestle with pricing pressures, supply chain issues, and labor supply constraints. The 12-month average is 60.80 percent, which reflects consistently strong growth in the services sector. The June composite index indicated growth for the 25th consecutive month after a two-month contraction in April and May 2020. but it is the lowest reading since May 2020. … Continue reading “ISM Non-Manufacturing Activity Slows for Third Straight month in June”

Manufacturing ISM in June Weaker Than Expected as New Orders Contract Below 50%

The June ISM Manufacturing Index came in at 53.0% below the consensus 55.0% and from 56.1% in May. The clear slowdown in manufacturing activity is evident, highlighted by the first contraction in new order activity in 25 months. The New Orders Index fell to 49.2% from 55.1%. June marked the 25th consecutive month of expansion in the manufacturing sector. However, this June reading was the lowest since June 2020. Price pressures mellowed, though still elevated. Prices Index dropped to 78.5% from … Continue reading “Manufacturing ISM in June Weaker Than Expected as New Orders Contract Below 50%”

Manufacturing ISM in May Stronger Than Expected as New Orders Rise

The May ISM Manufacturing Index came in at 56.1% over the consensus 54.9% from 55.4% in April. Of note was the Prices Index falling to 68.2% from 82.4%. May marked the 24th consecutive month of expansion in the manufacturing sector. However, this May reading was the second lowest since September 2020. Price pressures mellowed, though still elevated. Prices Index dropped to 82.2% from 84.6%. The hope is improved supply chain conditions; the question is does the Ukraine Russian war not allow … Continue reading “Manufacturing ISM in May Stronger Than Expected as New Orders Rise”

December Manufacturing ISM Prices Index Fell Sharply, Is Inflation Peaking?

The ISM Manufacturing Index for December came in at 58.7% under the consensus 60.3% and 61.1% in November. Of note was the Prices Index falling to 68.2% from 82.4%. Price pressures mellowed, are still alleviated but a sharp pullback. The assumption is improved supply chain conditions; the question is does the Omicron variant bring the gains undone, or become deflationary with demand destruction? January will be illuminating. The Prices Index 14.2-percentage point decrease month over month is big but ISM’s … Continue reading “December Manufacturing ISM Prices Index Fell Sharply, Is Inflation Peaking?”

ISM US Services Index Soars To Another Record As Economy Expands

The key ISM July US services index soared to an all time high 64.1 vs 60.1% in June,  the fourteenth straight month of growth for the services sector which accounts for over 80% of the US GDP.  Services industries pent-up demand with many supply chain disruptions bringing inflation risk and challenges with labor and product.

ISM US Services Index Soars To Record 63.7 As Economy Opens Up

The key ISM March US services index soared to an all time high 63.7 vs 59.0 marks the tenth straight month of growth for the services sector which accounts for over 80% of the US GDP.  All 18 services industries reported growth with many getting supply chain disruptions bringing inflation risk.  

US ISM Manufacturing Highest Since 2004 Diverges With Weak Markit Report

Manufacturing surged in August as measured by the ISM by 61.3 from an expected 57.6. However that is just half the story, 15 minutes earlier US August final Markit Manufacturing  was reported as the lowest since November 2017  with PMI 54.7 vs 54.5 expected. Sceptism should be applied to both reports.

US GDP Raised to 5.4% by Atlanta Fed After Strong Manufacturing and Construction

The Atlanta Fed GDPNow model forecast for real GDP growth in Q4 2017 rose to 5.4% on February 1, up from 4.2% on January 29 spurred by manufacturing ISM Report increased forecasts spending and real private fixed-investment growth.