Thursday, September 4, 2014

ISM Nonmanufacturing Index at Record High

In August, the ISM nonmanufacturing index reached the highest level ever since the index’s inception in January 2008. The index was 59.6 in August, a 0.9 point increase from the month prior. Any reading above 50 indicates industry expansion and August is the 55th month the index has remained above that threshold.

The employment index saw strong growth, improving 1.1 points to 57.1. It is the highest reading since February 2013. Without any major upcoming economic hurdles, employment index should maintain its healthy path.

Business output shot up to 65.0, the highest recording since February 2011. However, new orders declined in August, settling at 63.8. Exports declined 0.5 points, which may hurt the nominal trade deficit, and GDP.

Read the ISM report.

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