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 Increased to 69.1 in November
Posted Under: Autos • Data Watch • Employment • Inflation • ISM Non-Manufacturing • COVID-19

 
Implications:  Growth in the service sector continued to accelerate in November, with the composite index hitting the highest level on record, registering 2.4 percentage points above the previous all-time high set just last month, and marking the fifth time this year a new record has been set.  Gains were broad-based, with all 18 industries reporting growth.  Much of the elevated reading can be attributed to the indexes for business activity and new orders, which also both sit at all-time highs. Notably, the business activity index surged to 74.7 from 69.8 in November, proving Americans are itching to be out despite increasing COVID fears. Survey comments continue to be dominated by discussions related to supply chain shortages, signaling the possibility of even faster growth in the service sector if these problems can be fixed.  On that note, today's report showed recent progress for supply-chains on several fronts.  Though still elevated, the backlog of orders index fell to 65.9 from 67.3, while the prices paid index ticked down from its record high, and the supplier deliveries index remained steady.  Only time will tell if these improvements continue into the start of 2022, but recent similar movements from the ISM Manufacturing report out earlier this week also signal that the tides may be shifting.  Importantly, there was also progress on the labor front, with the employment index shooting up to 56.5 from 51.6. Hiring in the service sector should be a tailwind for activity in the months ahead and help alleviate some of the supply-chain pressures that have been ingrained since the beginning of the pandemic.  It's clear the question that must be answered in the course of the service sector recovery is not whether there will be enough demand, but if there will be enough supply to meet it.  In other recent news, car and light truck sales declined 0.7% in November to a 12.9 million annual rate. These sales are down 19.0% from a year ago. The key hurdle for these sales remains supply constraints, largely due to a shortage of computer chips. Look for that problem to ease over the next year, resulting in a faster pace of sales.

Click here for a PDF version
Posted on Friday, December 3, 2021 @ 11:54 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.