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. 


Subscribe to our email list for regular free market updates
as well as a chance to get coupons!