|This email was sent to you by:|
Harry Chriest |
Mortgage News Daily
Email alerts, such as this one, are a free service
provided by Mortgage News Daily. If you would like to receive an alert when important news breaks
please register to join our community
ECON: ISM Services Weaker Than Expected; Bond Markets Improve
Posted to: Micro News
Monday, January 06, 2014 10:13 AM
- Non Manufacturing PMI at 53.0 in December vs 54.5 forecast, 53.9 in November
- New Orders 49.4 vs 56.4 Nov, first contraction since July 2009
- Employment rose to 55.8 from 52.5
Bond markets have reacted favorably to the data so far with 10yr yields moving to new 2-week lows at 2.963. Fannie 4.0s have added 2 ticks from the morning update and are close to Thursday's highs of 103-07. A large negative revision to Durable Goods in this morning's Factory Orders data isn't hurting the cause either. The revision lower was expected, but perhaps not as big as the one seen (from 3.5 to 1.8)
The NMI® registered 53 percent in December, 0.9 percentage point lower than November's reading of 53.9 percent. This indicates continued growth at a slightly slower rate in the non-manufacturing sector.
The Non-Manufacturing Business Activity Index decreased to 55.2 percent, which is 0.3 percentage point lower than the 55.5 percent reported in November, reflecting growth for the 53rd consecutive month, but at a slightly slower rate.
The New Orders Index contracted after 52 consecutive months of growth for the first time since July 2009, when it registered 48 percent. The index decreased significantly by 7 percentage points to 49.4 percent, and the Employment Index increased 3.3 percentage points to 55.8 percent, indicating growth in employment for the 17th consecutive month and at a faster rate.
The Prices Index increased 2.9 percentage points to 55.1 percent, indicating prices increased at a faster rate in December when compared to November. According to the NMI®, eight non-manufacturing industries reported growth in December. Despite the substantial decrease in the New Orders Index, respondents' comments predominately reflect that business conditions are stable.
More from MND:
If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.