ISM Service-Sector Reading Wallops Expectations
From AP (Institute for Supply Management release here):
NEW YORK (AP) — The service sector of the U.S. economy grew at a quicker pace in November than in the previous month, shaking off some effects of the housing slump, a trade group said Tuesday.
The Tempe, Ariz.-based Institute for Supply Management reported that its index of activity in the service sector, which makes up about two-thirds of the nation’s economy, rose to 58.9 in November from 57.1 in October.
The results came in ahead of analysts’ forecast of 55.5.
The index went UP by more than it was expected to come DOWN.
Earlier this week, the manufacturing index, making up about 12% of the nation’s economy, came in just barely in contraction mode at 49.5 after 41 months of expansion (above 50 indicates expansion).
Two-thirds of the economy is on fire, and burning more brightly; 12% is just below simmer (I believe that all of the rest is the government sector). I’ll take it.
Remember BizzyBlog’s Rule (actually common sense): Absent compelling evidence to the contrary, the Administration and the 109th Congress get full credit or blame for the economy until Sept. 30, 2007.
