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 composite index fell to 56.0 in March
Posted Under: Data Watch • ISM Non-Manufacturing
Supporting Image for Blog Post

Implications: The service sector continues to grow. The ISM services index came in lower than expectations, but remains well above 50 (which signals expansion). The sector has now been above 50 for 27 straight months and is growing at a rapid rate. The business activity index, which has an even stronger correlation with real GDP growth than the overall index, fell in March, but remains at a strong 58.9 and continues in an upward trend. The employment index rose to 56.7 in March. This gain is consistent with other employment measures for a good employment report on Friday. On the inflation front, the prices paid index fell to a still elevated 63.9 after rising to 68.4 last month. These reports signal continued inflation pressure and make it harder for the Federal Reserve to justify the very loose stance of monetary policy. On the jobs front, the ADP Employment index, a measure of private sector payrolls, increased 209,000 in March. The official Labor Department report arrives Friday morning. We anticipate a nonfarm gain of 210,000 and a private sector increase of 223,000. (First Trust will be closed on Good Friday, so we won't be writing on the employment numbers until Monday.) In other recent news, autos and light trucks were sold at a 14.4 million annual rate in March, slightly less than the consensus expected pace of 14.6 million, but still the second highest month since May of 2008. Sales were down 4.8% from February, but are still up 10% from a year ago. 

Click here for a PDF version.
Posted on Wednesday, April 4, 2012 @ 11:07 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 © 2024 All rights reserved.