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Brian Wesbury
Chief Economist
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Bob Stein
Deputy Chief Economist
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 | The ISM non-manufacturing composite index rose to 53.2 in September |
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Implications: After the August decline, the ISM non-manufacturing index bounced back in September, coming in above the consensus expected increase to 52.0. This is now the ninth consecutive month that the overall index has remained above the critical 50 level, indicating the service sector of the economy is still growing. With a strong increase in equities in September, today's report may have also been influenced by sentiment, as is often the case.
On the inflation front, the prices paid index remains at an elevated level of 60.1, signaling upward price pressure similar to the levels seen earlier this year. With easy money from the Federal Reserve, we expect inflation to accelerate beginning next year.
In other recent news, pending home sales, which are contracts to purchase existing homes, increased 4.3% in August, beating a consensus expected gain of 2.5%. The rise in pending sales suggests an increase in existing home sales in September. Late last week, automakers reported that cars and light trucks were sold at an 11.76 million annual rate in September, beating consensus expectations and the fastest pace since the collapse of Lehman Brothers in September 2008. Look for more gains in the year ahead as worker pay is rising and consumer debts are much lower than a year ago.
Click here to view the entire report.
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These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
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The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
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