The US ISM Non-Manufacturing PMI scored 57.3. Early expectations stood on a small slide from 56.8 to 56.1 points.
The employment component is critical for the Non-Farm Payrolls. It dropped from 57.4 to 55.7 points. This indicates slower growth. This sector is America’s largest.
New orders rose to 61.8 points, a very strong score. Inventories switched from contraction to growth and reached 53.5 points. Prices accelerated their rise and reached a high level of 68.4 points.
Here is the bottom line from the report:
“The majority of comments from the respondents reflect a growing level of optimism about business conditions and the overall economy. There is a concern about inflation, rising fuel prices and petroleum-based product costs.”
All in all, this report adds to the sense that QE3 is not coming on March 13th. Even if the rise in Non-Farm Payrolls won’t be as impressive as in January, employment is still on the rise.
In addition, more QE means higher oil prices. With the rise in prices already hurting the US consumer through the fuel pump and with inflation strongly reflected here, the chances are low.
Also in the US, factory orders squeezed by 1%. This was better than an expected squeeze of 1.3%.
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