The ISM non-manufacturing index slid slightly in September, but not as much as analysts had expected. The data does not suggest that the economy is headed for recession, some economists noted. In the current climate that qualifies as very good news, particularly after the ISM manufacturing index showed some life earlier this week
The index fell to 53 in September from 53.3 in August, but the index tracking new orders rose to 56.5 from 52.8.
Stocks jumped on the news, with the Dow swinging from negative territory to a 48-point gain more recently. General Electric (GE) was up 2.2%.
Today’s data adds to a slightly rosy picture painted this morning by the ADP employment report, which said that the private sector added 91,000 jobs in September. The ISM index, however, raised a few concerns about service-sector employment: that section of the index fell to 48.7 from 51.6.
All eyes clearly will be on the Labor Department’s monthly employment numbers, which are scheduled to be released Friday.
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