Posts Tagged ‘Non-Manufacturing Index’

Non-Manufacturing ISM Still Contracting

Non-Manufacturing ISM Still Contracting

Courtesy of Mish

The Institute for Supply Management August 2009 Non-Manufacturing ISM Report On Business® shows the Non-Manufacturing (Service) sector is still contracting.

"The NMI (Non-Manufacturing Index) registered 48.4 percent in August, 2 percentage points higher than the 46.4 percent registered in July, indicating contraction in the non-manufacturing sector for the 11th consecutive month but at a slower rate. The Non-Manufacturing Business Activity Index increased 5.2 percentage points to 51.3 percent. This is the first time this index has reflected growth since September 2008. The New Orders Index increased 1.8 percentage points to 49.9 percent, and the Employment Index increased 2 percentage points to 43.5 percent. The Prices Index increased 21.8 percentage points to 63.1 percent in August, indicating a substantial increase in prices paid from July."

Non-Manufacturing Survey Results

click on chart for sharper image

Even though things are contracting at a slower pace, 12 non-manufacturing industries are still contracting while only 6 are expanding. From the report:

The six industries reporting growth in August based on the NMI composite index — listed in order — are: Real Estate, Rental & Leasing; Health Care & Social Assistance; Transportation & Warehousing; Utilities; Accommodation & Food Services; and Information. The 12 industries reporting contraction in August — listed in order — are: Management of Companies & Support Services; Mining; Finance & Insurance; Arts, Entertainment & Recreation; Professional, Scientific & Technical Services; Construction; Other Services; Agriculture, Forestry, Fishing & Hunting; Wholesale Trade; Educational Services; Public Administration; and Retail Trade.

The most striking thing in the report is the price index soaring from 41.3 to 63.1. Bloomberg discusses the report in U.S. Service Industries Contracted at Slower Pace.

The Institute for Supply Management’s index of non- manufacturing businesses, which make up almost 90 percent of the economy, rose to 48.4, exceeding forecasts and the highest level in 11 months, from 46.4 in July, according to the Tempe, Arizona-based group. Readings below 50 signal contraction.

A measure of new export orders rose to 54 from 47.5, while the index of prices paid rose to 63.1, the highest in 11 months, from 41.3. The gain in prices was the biggest 1-month jump since records began in 1997, due to higher energy costs.

Federal Reserve efforts to unlock credit and government measures such as the “cash-for-clunkers” incentive program are reviving


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Contraction is not an Improvement: Services Edition

Contraction is not an Improvement: Services Edition

Courtesy of Econompic Data

[Bill at VIX And More wrote a darn nice piece on Econompic Data's Darn Nice Economic Eye Candy today - I agree!]

Bloomberg reports (Bold Mine):

U.S. service industries from retailers to homebuilders contracted last month at the slowest pace in nine months, as measures of new orders and employment improved.

The Institute for Supply Management’s index of non- manufacturing businesses, which make up almost 90 percent of the economy, rose to 47 — higher than forecast — from 44 in May, according to data from the Tempe, Arizona-based group. Readings less than 50 signal contraction.

The index’s third straight monthly improvement reflects signs of stabilization in housing and consumer spending. That combined with leaner inventories means companies may start expanding output again in coming months. Still, mounting job losses and stagnant wages are likely to restrain some purchases, limiting the impact of any recovery.

 
Below 50 = Contraction; ISM Non-Manufacturing = 47; What did the services portion of the economy do in June? Contracted.
 

Non-Manufacturing Index

 
Source: ISM

 


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Zero Hedge

The US Can't Afford To Let Shale Fail

Courtesy of ZeroHedge View original post here.

Authored by Robert Rapier via OilPrice.com,

It’s no secret that the growth of U.S. shale oil has been a thorn in the sides of both Saudi Arabia and Russia. They have seen their market shares erode as the shale boom made the U.S. the world’s largest producer of crude oil. But Saudi Arabia’s national oil company, Saudi Aramco, is a single entity that produces 13 percent of the world’s oil and controls 17 percent of the world’s proved reserves. That puts them in a very p...



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ValueWalk

Treasury Secretary Mnuchin on small business help plans

By Jacob Wolinsky. Originally published at ValueWalk.

CNBC transcript: Treasury Secretary Steven Mnuchin Speaks with CNBC’s “Squawk on the Street” today on small business help related to coronavirus

WHEN: Today, Wednesday, April 1, 2020

WHERE: CNBC’s “Squawk on the Street

Q4 2019 hedge fund letters, conferences and more

Full interview with Treasury Secretary Steven Mnuchin on small business help

JIM CRAMER: It’s our pleasure to bring in Steven Mnuchi...



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Kimble Charting Solutions

S&P Facing A Historical Kiss of Resistance?

Courtesy of Chris Kimble

Is the S&P starting out a new month and quarter at a very important price point? This chart would say YES!

This chart looks at the S&P 500 on a weekly basis over the past 12-years, reflecting that it has spent the majority of the past 9-years “inside of this rising channel and above its 200-week moving average!”

The weakness in March saw the S&P break below the bottom of the channel and its 200-week ma line for the first time in 9-years.

The small counter-trend rally last week has the S&...



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The Technical Traders

Weakness Appears To Be Setting For This Weeks Economic Data

Courtesy of Technical Traders

As the world reacts to the global economic slowdown because of the COVID-19 virus event and the massive stimulus programs and central bank efforts to support the global economy, investors still expect weakness in the US and foreign markets.  We believe this expected weakness will not subside until news of a proper resolution to this virus event is rooted in the minds of investors and global markets.

Hong Kong and China are currently concerned about experiencing a “third wave” of the COVID-19 virus within their society.  As the economies open back up to somewhat normal, people are very concerned that a renewed wave of new infections will suddenly appear and potenti...



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Phil's Favorites

Mr. Morgan

 

Mr. Morgan

Courtesy of 

The Federal Reserve had a precursor before it became the lender of last resort. It wasn’t an institution or a government department. It was a single, solitary man named J. Pierpont Morgan. Mr. Morgan, he was called in the newspapers, and you didn’t need to go any further – everyone knew to whom you were referring.

Stock market panics were common in the early 1900’s because of the agrarian nature of the economy. Each summer, the local banks that catered to farmers throughout the country began calling their money back from the banks in New York City and Chicago so they could raise enough capital to bring in the h...



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Insider Scoop

Why NanoVibronix's Stock Is Trading Higher Today

Courtesy of Benzinga

NanoVibronix (NASDAQ: NAOV) shares are trading higher on Wednesday.

The company announced it has received reimbursement approval from the U.S. Centers for Medicare & Medicaid Services for its PainShield.

NanoVibronix focuses on the manufacturing and sale of noninvasive biological response-activating devices that target biofilm prevention, wound healing, and pain therapy. Its principal products include UroShield, an ultrasound-based product to prevent bacterial colonization and biofilm in urinary catheters, enhance antibiotic efficacy,...



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Biotech/COVID-19

The new coronavirus emerged from the global wildlife trade - and may be devastating enough to end it

 

The new coronavirus emerged from the global wildlife trade – and may be devastating enough to end it

Government officers seize civets in a wildlife market in Guangzhou, China to prevent the spread of the SARS disease, Jan. 5, 2004. Dustin Shum/South China Morning Post via Getty Images

Courtesy of George Wittemyer, Colorado State University

COVID-19 is one of countless emerging infectious diseases that are zoonotic, meaning they originate in animals. ...



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Chart School

Big moving Averages and macro investment decisions

Courtesy of Read the Ticker

When price is falling every one wonders where demand will come in.


RTT black screen Tv videos study the simplest measure of price (simple moving average). What has happen before guides us now. 














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Members' Corner

10 ways to spot online misinformation

 

10 ways to spot online misinformation

When you share information online, do it responsibly. Sitthiphong/Getty Images

Courtesy of H. Colleen Sinclair, Mississippi State University

Propagandists are already working to sow disinformation and social discord in the run-up to the November elections.

Many of their efforts have focused on social media, where people’s limited attention spans push them to ...



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Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



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Promotions

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Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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