Friday, December 3, 2010
The November ISM service sector report was about as expected, and confirms the message we are getting from numerous areas: the economy is growing at a modest/moderate pace, and there is continued upward price pressure. The most encouraging thing in the report from my perspective was the employment index, shown above. Almost 53% of those surveyed report their companies are in a hiring mode, the most since before the last recession started.
With so many idle workers still out there, a return of business confidence can quickly result in a significant pickup in jobs and total output. U.S. companies are still accumulating a mountain of over $1 trillion in profits just waiting to be put to work when the conditions are more favorable. It certainly pays to remain optimistic even though the economy seems sluggish.
Posted by Scott Grannis at 1:18 PM