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 53.5 in April
Posted Under: Data Watch • ISM Non-Manufacturing
Supporting Image for Blog Post

Implications: Unlike the manufacturing sector, which showed acceleration in April, the service sector continued to grow in April, but not as quickly as it had been for the first three months of the year. While still above 50 for the 28th straight month – signaling growth – the ISM services index came in lower than the consensus expected in April. The business activity index, which has an even stronger correlation with real GDP growth than the overall index, also fell in April, but remains at a solid 54.6.  The employment index followed the same pattern, dropping, but to a level still above 50. On the inflation front, the prices paid index fell to 53.6. This is consistent with other indicators showing a temporary moderation in inflation. However, given the loose stance of monetary policy, we don't expect this lull to last. In other recent news, the ADP employment index, which measures private sector payrolls, increased 119,000 in April.  New claims for unemployment insurance fell 27,000 last week to 365,000, while continuing claims for regular state benefits dropped 53,000 to 3.28 million.  Plugging all these figures into our employment models suggests tomorrow's official Labor Department report will show a 155,000 gain in private payrolls (145,000 nonfarm) and a jobless rate of 8.1%.

Click here for a PDF version
Posted on Thursday, May 3, 2012 @ 10:37 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.