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
  ISM Services index increases to 52.6
Posted Under: Data Watch • ISM
Supporting Image for Blog Post

Implications:  Great news on the labor market this morning.  The ADP Employment index, a measure of private payrolls, increased an eye-popping 325,000 in December, easily beating consensus expectations and the highest reading on record, which dates back to 2000.  As a result, we are moving up our private payrolls forecast for the official Labor Department report (released tomorrow morning) to 225,000.  Some of this probably reflects military reservists leaving active duty and getting back to their jobs.  In other news on the job front, initial claims for unemployment insurance declined 15,000 last week to 372,000.  The four-week average is now 373,000, the lowest since June 2008.  Continuing claims for regular state benefits dropped 22,000 to 3.595 million.  The ISM services index fell just short of expectations, but it is headed on the right direction and has remained above the critical 50 level, showing expansion, for 25 straight months.  The business activity index, which has a stronger correlation with real GDP growth than the overall index, remained strong at 56.2 in December, and the new orders index rose slightly.  On the inflation front, the prices paid index dipped to 61.2 after rising to 62.5 last month.  Even though this measure of inflation fell slightly, it remains at elevated levels, indicating upward price pressures.  In other recent news, autos and light trucks were sold at a 13.6 million annual rate in December, down slightly from November but up 8.4% from a year ago.  Look for more growth in auto sales in the year ahead as consumer purchasing grows due to wage increases and smaller debt repayments.

Click here for a printable version.
Posted on Thursday, January 5, 2012 @ 10:47 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.