ISM Non-Manufacturing Slows in September, But Remains Ahead of Expectations
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Non-manufacturing business in the U.S. fell less than expected in September, signalling economic expansion may still be occurring in the U.S., even though it's at a slower pace.
The Institute for Supply Management's reading declined from 53.3 in August to 53.0 in September. Economists were looking for a larger drop to 52.8.
Bloomberg notes that ISM's non-manufacturing index averaged 56.1 in the five years leading up to December 2007, the start of the last recession.
Industries from retailing to health care, and most everything in between, are covered.
Tuesday morning, Fed Chair Ben Bernanke testified on the economic outlook and monetary policy actions in front of the U.S. Congress Joint Economic Committee. The overall tone seemed bearish. "The Federal Open Market Committee (FOMC) now expects a somewhat slower pace of economic growth over coming quarters than it did at the time of the June meeting," Bernanke said. He also hinted at further intervention, saying, "the Committee will continue to closely monitor economic developments and is prepared to take further action as appropriate to promote a stronger economic recovery in a context of price stability."
Bernanke reflected on much of what the data from August showed: nonfarm payrolls increased just 17,000, far below the 110,000 jump expected. Hourly earnings were 0.1 percent lower, while the average workweek consolidated 0.1 point to 34.2. On the news, the FOMC said it would keep rates low for an extended period.
This Friday, nonfarm payrolls are expected to come in at 83,000.
The Institute for Supply Management's reading declined from 53.3 in August to 53.0 in September. Economists were looking for a larger drop to 52.8.
Bloomberg notes that ISM's non-manufacturing index averaged 56.1 in the five years leading up to December 2007, the start of the last recession.
Industries from retailing to health care, and most everything in between, are covered.
Tuesday morning, Fed Chair Ben Bernanke testified on the economic outlook and monetary policy actions in front of the U.S. Congress Joint Economic Committee. The overall tone seemed bearish. "The Federal Open Market Committee (FOMC) now expects a somewhat slower pace of economic growth over coming quarters than it did at the time of the June meeting," Bernanke said. He also hinted at further intervention, saying, "the Committee will continue to closely monitor economic developments and is prepared to take further action as appropriate to promote a stronger economic recovery in a context of price stability."
Bernanke reflected on much of what the data from August showed: nonfarm payrolls increased just 17,000, far below the 110,000 jump expected. Hourly earnings were 0.1 percent lower, while the average workweek consolidated 0.1 point to 34.2. On the news, the FOMC said it would keep rates low for an extended period.
This Friday, nonfarm payrolls are expected to come in at 83,000.
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