Following the solid Jan ISM mfr’g report on Tues, the ISM services index was also very good at 59.4 vs the estimate of 57.2 and up from 57.1 in Dec. It’s now at the best level since Aug ’05. Business Activity rose 1.7 pts, New Orders rose 3.5 pts, Backlogs rose 2 pts and ahead of payrolls tomorrow, the Employment component rose 2 pts to the best since May ’06. Export orders fell by 2.5, but is unlike the export of manufactured goods. With the continued improvement in overall activity again came with rising inflation pressures as Prices Paid rose 2.6 pts to 72.1, the highest since Sept ’08. Of the 18 industries surveyed, 13 reported growth and ISM gave us this sound bite, “Respondents’ comments are mostly positive about business conditions; however, they still remain cautious about the sustainability.” It’s a question we should all ask as we approach June 30th when the Fed is done with QE2 and we see what’s real and what’s not.
ISM services solid but with rising prices paid
February 3, 2011 10:31am by
This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client. References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers Please see disclosures here: https://ritholtzwealth.com/blog-disclosures/