Preview: Due January 7 - U.S. December ISM Services - Rebounding from a weaker November
While the index is unlikely to be quite a strong as the 58.1 S and P services PMI for December, we expect a significant bounce in December’s ISM services index, to 55.5 from November’s weaker 52.1.
November’s slowing from October’s 56.1 may have been exaggerated by tougher seasonal adjustments, particularly for business activity and new orders, which both have more supportive seasonal adjustments in December. We expect each index to rise to 59.5 from weaker November outcomes of 53.7.
We expect only modest gains in the other two contributors to the composite, employment to 52.0 from 51.5 and deliveries to 51.0 from 49.5. Prices paid do not contribute to the composite. Here we expect modest slippage to 57.0 from 58.3. Trend here has had little direction for over a year.
