ISM Services 02/05/08
Summary: Readings under 50 indicate contraction...
Its official, the bleed or spillover of dominoes have finally cascaded into the service base, 1st service sector contraction in 58 months.
Get ready for the McJob layoffs to start rolling... and when budget deficits get clubbed...
that will knock out the "last legs" of education and health care employment.
ISM Services NMI Jan 44.6 vs prior 54.4 Full Report
Inside the number: The lowest reading since October 2001, 14 of 17 industries reported services contraction.
Business Activity 41.9 vs 54.4; New Orders 43.5 vs 53.9; Employment 43.9 vs 51.8;
Backlog 46 vs 49; Supplier Deliveries 49 vs 52.5; Prices 70.7 vs 71.5.
"Recession fears taking hold as cost containment strategies have been dusted off from 2002." (Finance & Insurance)
"Oil increases affecting delivery costs and the costs of goods." (Retail Trade)
"Business is tough coming into Q1 after a very tough, unprofitable Q4. Competitive pricing is driving rates to unreasonable levels as competition is over fleeted." (Real Estate, Rental & Leasing)
"... business activity is currently lower than normal at this time." (Wholesale Trade)
Its official, the bleed or spillover of dominoes have finally cascaded into the service base, 1st service sector contraction in 58 months.
Get ready for the McJob layoffs to start rolling... and when budget deficits get clubbed...
that will knock out the "last legs" of education and health care employment.
ISM Services NMI Jan 44.6 vs prior 54.4 Full Report
Inside the number: The lowest reading since October 2001, 14 of 17 industries reported services contraction.
Business Activity 41.9 vs 54.4; New Orders 43.5 vs 53.9; Employment 43.9 vs 51.8;
Backlog 46 vs 49; Supplier Deliveries 49 vs 52.5; Prices 70.7 vs 71.5.
"Recession fears taking hold as cost containment strategies have been dusted off from 2002." (Finance & Insurance)
"Oil increases affecting delivery costs and the costs of goods." (Retail Trade)
"Business is tough coming into Q1 after a very tough, unprofitable Q4. Competitive pricing is driving rates to unreasonable levels as competition is over fleeted." (Real Estate, Rental & Leasing)
"... business activity is currently lower than normal at this time." (Wholesale Trade)
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