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Analysts at Wells Fargo point out that the expansion in the services sector slowed in April according to the latest ISM non-manufacturing index, which fell for a second straight month to 55.5, the lowest number since August 2017.

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“Any number above 50 still signals expansion, but things have certainly cooled off since the non-manufacturing ISM hit a 13-year high of 60.8 back in September.  Taken together with Wednesday’s report that the manufacturing ISM slipped to more than a 2-year low of 52.8, survey data indicate a slowing that is curiously out of step with the solid jobs report & firmer consumer spending reported earlier this week.”

“In perhaps the most glaring example of variation between hard and soft data, the employment component of today’s ISM nonmanufacturing showed a 2.2 point decline to 2-year low of 53.7 just 90 minutes after the Labor Department reported job growth for the same month that beat even the highest published forecast.”