U.S. August ISM Services - Still showing modest expansion
August’s ISM services index at 51.5 is almost unchanged from July’s 51.4 and implies an economy continuing to expand at a modest pace. Employment at 50.2 is down from July’s 51.1, but in being above the neutral 50 remains stronger than the readings seen from February through June.
The composite is less positive than the S and P services index of 55.7, with the correlation between the two series poor and the S and P data seemingly more sensitive to interest rate expectations.
The contributors to the ISM composite were mixed, with new orders up to 53.0 from 52.4, and delivery times up to 49.6 from 47.6. However in addition to the slippage seen in employment, business activity slowed to 53.3 from 54.5.
Prices paid do not contribute to the composite. A modest increase to 57.3 from 57.0 was seen but the series continues to have very little direction.
