The ISM Service Sector index is yet another of many indicators which suggest the economy is experiencing a V-shaped recovery. Conditions were abysmally bad at the end of last year, but they have rapidly returned to some semblance of normality.
It's not off, it's just that there are two general indices for the non-manufacturing sector. I've traditionally used the one that is now 55, whereas the press seems to focus on the one that is 50.6. Both show the same pattern, just different levels.
There seems to be reluctance for businesses to commit..the ratio of ISM non manufacturing business activity to ISM non manufactring employment has averaged 1.12 but todays number has the ratio at 1.34...we have the business activity but the hiring hasn't started yet at list by this index.
FYI- The chart looks a bit off. You show ISM services at ~55, whereas the latest figure is 50.6.
ReplyDeleteIt's not off, it's just that there are two general indices for the non-manufacturing sector. I've traditionally used the one that is now 55, whereas the press seems to focus on the one that is 50.6. Both show the same pattern, just different levels.
ReplyDeletemissed the "business activity" wording.
ReplyDeletethanks for the clarification
There seems to be reluctance for businesses to commit..the ratio of
ReplyDeleteISM non manufacturing business activity to ISM non manufactring
employment has averaged 1.12 but todays number has the ratio at 1.34...we have the business activity but the hiring hasn't started yet at list by this index.