Wednesday, October 14, 2015

US Services Economy......ANOTHER PESKY FACT!

US Services Economy

"Bounce" Dies As New Orders Crash Most Since Lehman

On the heels of China's, Japan's, Brazil's, and Europe's Services PMI weakness (and US Manufacturing PMI and ISM weakness), Markit's US Services PMI printed 55.1 (missing exectations of 55.6) and dropping to its lowest since June. This catch-down to Manufacturing weakness suggests the mid-year bounce is well and truly dead as even Markit admits, "it remains unclear as to whether growth will weaken further as we move into Q4." Additionally, after its exuberant spike to 10 year highs in July, ISM Services continued to drop back (to 56.9 missing expectations) with the biggest collapse in New Orders since Lehman.

Services (blue) appear to catching down to Manufacturing (red) in the ISM and PMI surveys...

After spiking to 10-year-highs in July, ISM Services continues to slide back to reality. Even after adjustements ISM Services is ugly...

New Orders crashed... most since Lehman....

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