Wednesday, November 4, 2009

Yet another V sign

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.


Jake said...

FYI- The chart looks a bit off. You show ISM services at ~55, whereas the latest figure is 50.6.

Scott Grannis said...

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.

Jake said...

missed the "business activity" wording.

thanks for the clarification

brodero said...

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.