Economy

Economic Data Roundup (09/06/2016)

9/6/16 12:00 PM

iStock_000009946822_Small.jpgThe only important data released this morning was a report on services sector activity in America, which accounts for a much larger portion of the overall U.S. economy than manufacturing. Specifically, the Institute for Supply Management’s (ISM’s) non-manufacturing index plunged to 51.4 in August, the biggest expectations miss since 2011 and the worst headline reading in half a year. Any print above 50 still implies an overall expansion in activity but under the hood, measures of production, new orders, employment, inventories, and foreign trade all deteriorated markedly last month, and comments from surveyed managers were largely mixed. Disappointing data from IHS Markit similarly signaled a slowdown in U.S. services sector activity last month, with the firm’s chief economist Chris Williamson adding that “The weak PMI readings send a downbeat note on economic growth in the third quarter. Taken together, the manufacturing and services PMIs are pointing to an annualized GDP growth rate of a mere 1 percent.”

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Sources: Econoday, Twitter, Bloomberg, ZH, IHS Markit, ISM, FRBSL

Post author: Charles Couch