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The Institute for Supply Management’s non-manufacturing index increased to 53.3 in August, from a reading of 52.7 in July. The number was much better than the consensus had expected. After a string of regional purchasing managers’ indexes reported drops in business sentiment to varying degrees over the past several weeks, many market watchers dialed back expectations and braced for the worst. While today’s report is somewhat stronger than we expected, it offers support for our long-held view that, while the U.S. economy may have lost momentum, it is still moving forward. Other details of the report were less encouraging. The employment component slipped to 51.6, a level that is consistent with only middling job growth. |
