With traders’ attention already turning towards this Friday’s Non Farm Payroll release, the release of today’s ISM Non Manufacturing data will be closely scrutinized for signs concerning the state of the US Economy. Despite having declined in March to 57.3; a figure which is expected to rise only slightly to 57.4 in April; the data has proven strong throughout the earlier months of the year.
The most recent ISM Non Manufacturing report; released on the 5th April; showed that despite a small decline on the previous month’s data, New Orders remained strong at 64.1. Whilst the declines in the Employment Index were slightly more dramatic; having fallen from 55.6 in February to 53.7 in March; the data does still imply growth, albeit at a slowed pace. At the same time, whilst prices paid by non manufacturing organisations for purchased materials and services declined slightly in March, the figure remains high at 72.1. It should however be noted that the prices paid data remains below levels seen throughout 2008.
Whilst the ISM Manufacturing Index is typically considered to be a more popular leading indicator for the strength of the US Economy; the latest round of data for which was released on Monday; there is no denying that the ongoing resilience evident within the non manufacturing index in early 2011 implies that ongoing economic strength should follow.
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