The US ISM Non-manufacturing Index dropped in December from 60.7 to 57.6. The non-manufacturing index did not weaken as much as the manufacturing index, which suggests that the overall economy continues to expand at a solid rate, explained Jay Bryson, economist at Wells Fargo.
Key Quotes:
“December’s reading was a bit softer than expected, but it did not exhibit the same falloff as the ISM manufacturing index did in December.”
“The prices paid component receded to an 18-month low of 57.6, which indicates that inflationary pressures may be subsiding somewhat.”
“Trade wars tend to have less effect on the service sector than on the factory sector.”
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