Tuesday, November 5, 2013

ISM Nonmanufacturing Index Rose in October

The ISM nonmanufacturing index rose in October to 55.4, following a drop the previous month. However, October’s report is below the third quarter average of 56.3. The report as a whole still performed well given the government shutdown in October, indicating businesses were not impacted as strongly as expected.

While the headline index is stronger than anticipated, details of the report are mixed. New orders dropped 2.8 points to 56.8. The employment index recovered some of the previous month’s decline, improving 3.5 points to 56.2. The improvement in the employment index is a postive indicator for what’s expected to be a weak October jobs report.

The negative detail in August’s report were the trade details, which saw imports increase and exports decrease, suggesting the nominal trade deficit widened in October, which would drag on GDP.

Read the ISM release.

No comments:

Post a Comment

Please read our comment policy before making a comment.