Like its factory sector counterpart, the ISM non-manufacturing index rose in August, up 2.8 points to 58.5, noted analysts at Wells Fargo. They see that increases in the current activity, new orders and backlog of orders components suggest broad-based strength.
Key Quotes:
“Although not quite as robust as the 14-year high seen in the ISM manufacturing index this week, the non-manufacturing index topped expectations with a 2.8 point gain to 58.5 in August. The backlog of orders component rebounded from its 2018 low by jumping five points to 56.5, while the business activity and new orders components both eclipsed the 60 mark. Comments from respondents generally reflected broad service sector strength.”
“The employment component rose slightly to 56.7 from 56.1. We are looking for 200,000 new jobs in tomorrow’s payroll release.”
“Prices paid eased slightly but remained elevated relative to most of this expansion.”
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