The Institute for Supply Management’s (ISM) non-manufacturing report showed that the U.S. services sector expanded, but well below expectations. The ISM’s latest index was 50.6% vs. and expected value of 51.5% and a previous value of 50.9%. Thus it was a pretty tepid result that breaks the rising trend of the last two months. The Employment component of their index also contracted as a faster rate.
See the official release here, or just check out the summaries pasted in below. Note that construction reported strength, which lines up with yesterday’s September new orders data which showed a 47% jump in new orders for construction machinery.
WHAT RESPONDENTS ARE SAYING …
“General economic tone is still ‘wait and see.’ Capital outlays are postponed for durable goods.” (Health Care & Social Assistance)
“Cost-cutting efforts continue.” (Transportation & Warehousing)
“Overall business activity increasing — forecast even better market conditions in the coming months.” (Construction) [Emphasis added]
“Business climate remains encouraging, but recovery will remain slow in rebounding.” (Professional, Scientific & Technical Services)
“The weakening U.S. dollar contributing to upward pressure on commodity prices.” (Wholesale Trade)