Preview: Due January 5 - U.S. November ISM Services Index - Slightly firmer but trend has little direction
We expect a modest increase in December’s ISM services index to 53.0 from 52.7 in October. While this would be the second straight increase there is little direction to trend with the index in a 50.0 to 55.0 range.
The S and P services index saw a third straight improvement in December though at 51.4 remains below November’s ISM services index.
ISM seasonal adjustments could give some support to business activity and new orders in December, which we see at 56.5 for both, versus 55.1 and 55.5 respectively in November. We expect modest slippage in the other two contributors to the composite, employment to 50.5 from 50.7 and deliveries to 48.5 from 49.6. Prices paid do not contribute to the composite. We expect a marginal rise to 58.5 from 58.3, and that would be a fifth straight month of very little change.
