Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Click for Bio
Follow Brian on Twitter Follow Brian on LinkedIn View Videos on YouTube
   Bob Stein
Deputy Chief Economist
Click for Bio
Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 
  The ISM Non-Manufacturing Index Rose to 54.0 in January
Posted Under: Autos • Data Watch • Employment • ISM Non-Manufacturing

 
Implications: After a surprise on the low side from the ISM manufacturing report, today's ISM service sector report surprised on the upside. The ISM services report came in at a healthy 54.0 in January, above consensus expectations and showing expansion for the 49th consecutive month. The business activity index – which has a stronger correlation with economic growth than the overall index – increased to 56.3, signaling solid economic growth. The best part of the report was a 0.8 point increase in the employment index, to 56.4. The employment index now stands at its highest level since November of 2010. The new orders index rose to 50.9 in January, reversing four months of declines and keeping the index in expansion territory. On the inflation front, the prices paid index ticked higher to 57.1 in January from 54.7 in December. Still no sign of runaway inflation, but given loose monetary policy, we expect this measure to move upward over the coming year. In other news this morning, the ADP Employment index, which measures private-sector payrolls, increased 175,000 in January. Our models now say the official Labor Department report (released Friday morning) will show a gain of 151,000 for both nonfarm and private payrolls. In other recent news, automakers sold cars and light trucks at a 15.2 million annual rate in January, down 1% from December, up only 0.1% from a year ago, and below the consensus expected pace of 15.7 million. According to NOAA, this was the coldest January in the last 20 years. As a result, take any soft January data with multiple grains of salt (if you have any left after using it on the roads).

Click here for a PDF version
Posted on Wednesday, February 5, 2014 @ 11:52 AM • Post Link Share: 
Print this post Printer Friendly

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.
 
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.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.