On Tuesday, shortly after the opening bell, the Institute of
Supply Management (ISM) reported that the non-manufacturing index
(NMI), which tracks the service sector of the economy, increased
1.1 percentage points in December to 55.0%, exceeding expectations
for a 54.3% reading. That follows last week's PMI report (
here), which missed expectations, coming in at 47.2 vs. 49.0%
expected (indicating a contraction for the fourth straight month),
and once again serves to demonstrate the divergence taking place
between the manufacturing and services economies - a key dynamic
that along with the resilient consumer, is serving to sustain the
overall economic expansion.
Recall that any NMI reading above 50% represents expansion while
anything below 50% indicates a contraction. The higher the reading
is above 50%, the faster the rate of growth. Additionally,
according to the ISM, an NMI reading above 48.6%, over time, is
usually indicative of an expansion of the overall economy.
On Tuesday, shortly after the
Posted by law6 on 7th of Jan 2020 at 10:45 am
On Tuesday, shortly after the opening bell, the Institute of Supply Management (ISM) reported that the non-manufacturing index (NMI), which tracks the service sector of the economy, increased 1.1 percentage points in December to 55.0%, exceeding expectations for a 54.3% reading. That follows last week's PMI report ( here ), which missed expectations, coming in at 47.2 vs. 49.0% expected (indicating a contraction for the fourth straight month), and once again serves to demonstrate the divergence taking place between the manufacturing and services economies - a key dynamic that along with the resilient consumer, is serving to sustain the overall economic expansion.
Recall that any NMI reading above 50% represents expansion while anything below 50% indicates a contraction. The higher the reading is above 50%, the faster the rate of growth. Additionally, according to the ISM, an NMI reading above 48.6%, over time, is usually indicative of an expansion of the overall economy.
law - keep in mind
Posted by jdaswani on 7th of Jan 2020 at 11:05 am
law - keep in mind that the BA manufacturing cuts are having a neg impact on ISM recovery and there was a GM Strike. numbers are neg skewed.