FXStreet (Córdoba) – According to John Silvia, Chief economist and Tim Quinlan, economist at Wells Fargo, today’s numbers from the ISM non-manufacturing report shows a different story from last week manufacturing survey of and augurs well for Friday’s NFP.
Key Quotes:
“The ISM non-manufacturing survey firmly in expansion territory at 59.1 feels completely out of step with the ISM manufacturing survey just two days ago.”
“Perhaps the biggest takeaway from today’s survey of non-manufacturing purchasing managers is the growing divergence between activity in the service sector, which is near current cycle highs, and the manufacturing sector, which is on the razor’s edge between expansion and contraction.”
“Earlier this week we learned that the employment component of the manufacturing ISM slipped into contraction territory. Yet, today we learned that the same measure for the service sector rose to the second highest level in the past decade (…) this measure is a good proxy for private sector job growth and augurs well for Friday’s jobs report.”
(Market News Provided by FXstreet)