Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       

Blog Home
   Brian Wesbury
Chief Economist
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
X •  LinkedIn
  The ISM Non-Manufacturing Index Rose to 55.3 in August
Posted Under: Data Watch • ISM Non-Manufacturing
Supporting Image for Blog Post


Implications:  A strong report from the service sector in August, with all major measures of activity showing growth.  And the pickup in activity was broad based, with fifteen of eighteen industries reporting growth in August, while just two reported contraction.  The most forward looking indexes – new orders and business activity – both ticked higher in August after showing continued, but slower, growth in July.  Given both the improved pace of new orders and optimism in comments from survey respondents, the coming months look likely to continue the positive trend in the largest part of the economy.  That isn't to say there won't be volatility as we enter the final third of the year, but continued growth in both the manufacturing and service sectors show an economy ready for higher interest rates.  The employment index also ticked higher in August, moving to 56.2 from 53.6. This comes in contrast to the employment data reported last Friday showing nonfarm payrolls rose 156,000 in August compared to 189,000 nonfarm jobs added in July.  Data can be volatile from month-to-month, and August payroll data is notorious for upward revisions in following months, which today's service sector suggests is likely to be the case again this year.  On the inflation front, the prices paid index rose to 57.9 in August, the highest reading since January, as rising costs for fuels and metals led the way.  When viewed as a whole, today's reading on the service sector shows healthy economic activity in Q3, and a positive outlook as we approach the holiday season. The plow horse plows on.    

Click here for PDF version

Posted on Wednesday, September 6, 2017 @ 11:31 AM • Post Link 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.
Follow First Trust:  
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 © 2023 All rights reserved.