Stat of the Day: ISM Services + Manufacturing Hits 3 Year High
Good analysis of the ISM report from First Trust. They feel strongly that the Business Activity indicator at 52.2 is a better indicator of the sector then the sentiment induced headline number of 50.5.
Bespoke has a nice chart today averaging the 2 ISM indexes. Since Manufacturing as been very strong, it shows how the combined numbers tell a different story then what the market seems to think. A picture is always worth 1,000 words when it comes to economic data.
The average ISM came in at 54.5 for January a number not seen since summer 2006. Its also worth noting that the 2004 recovery saw a number hit the 60s and that was after a mild recession where the numbers hardly dipped into the upper 40s. We're likely to see multiple months averaging the 60s once the Service sector heats up. Oh, and note the V shaped recovery. Hmmm!