Economic Reports 03/05/07
ISM Services Feb 54.3 vs prior 59.0 Full Report
Inside the number: This month the lowest reading since April 03.
The last 8 months the index is averaging 56.6% vs 59.4% in the 1st half of 2006, a clear sign of deceleration in the service sector.
Seasonal hiring and a drop in oil prices reflected here: employment up to 52.2% vs 51.7%, price index down to 53.8% vs 55.2%.
Discretionary consumer business contracting overall reflected here: New orders down to 54.8% vs 55.4%, back orders down to 47% vs 49%, inventories up to 50.5% vs 47.0%.
The layoffs in the service sector should continue to worsen and be become readily apparent by Q2 as the housing, automotive and manufacturing trains wreck and consumer spending pulls back further.
Inside the number: This month the lowest reading since April 03.
The last 8 months the index is averaging 56.6% vs 59.4% in the 1st half of 2006, a clear sign of deceleration in the service sector.
Seasonal hiring and a drop in oil prices reflected here: employment up to 52.2% vs 51.7%, price index down to 53.8% vs 55.2%.
Discretionary consumer business contracting overall reflected here: New orders down to 54.8% vs 55.4%, back orders down to 47% vs 49%, inventories up to 50.5% vs 47.0%.
The layoffs in the service sector should continue to worsen and be become readily apparent by Q2 as the housing, automotive and manufacturing trains wreck and consumer spending pulls back further.
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