July’s ISM Non Manufacturing Index: Up, But Still in Slight Contraction
This morning’s post from Hades on Michael Grunwald’s disgraceful defense of Barack Obama’s infamous tire inflation-based energy policy kept me from getting to the ISM’s Non Manufacturing Index in real time, which is something I generally try to do. Oh well.
Here’s the news (paragraph and dash breaks added by me for readability):
July 2008 Non-Manufacturing ISM Report On Business®
NMI (Non-Manufacturing Index) at 49.5%The NMI (Non-Manufacturing Index) increased 1.3 percentage points in July to 49.5 percent, indicating contraction for the second consecutive month in the non-manufacturing sector.
- The Non-Manufacturing Business Activity Index decreased 0.3 percentage point to 49.6 percent.
- The New Orders Index decreased 0.7 percentage point to 47.9 percent, and the Employment Index increased 3.3 percentage points to 47.1 percent.
- The Prices Index decreased 3.7 percentage points to 80.8 percent in July, indicating a slower rate in price increases than in June.
According to the NMI, nine non-manufacturing industries reported growth in July. Members’ comments in July indicate concern about inflationary pressures and the effect on the economy. Respondents’ comments are mixed about business conditions and vary by industry and company.
I have a feeling this whipped expectations, but let’s see …. Yup:
- Forex carried a prediction of 48.7.
- The Associated Press’s Joe Bel Bruno had a Thomson/IFR prediction of 49.0.
- MarketWatch’s assembled experts predicted 48.4.
My take: Right direction, not enough oomph. This index needs to get into seriously positive territory if GDP growth is to rise above the mediocre.
But I fear that the overseers of the POR Economyâ„¢ (Pelosi, Obama, and Reid), with their nuttiness in preventing oil drilling and insistence on increasing taxes, will prevent further progress. In my view, they want to see a negative third quarter GDP report in the worst way, and are bound and determined to do anything to get it. I am coming to believe that they see their presidential standard-bearer, “The One” I refer to as “Mr. BOOHOO-OUCH” (Barack O-bomba Overseas Hussein “Obambi†Obama – Objectively Unfit Coddler of Haters) as deeply flawed, and that a poor POR Economyâ„¢ is their last best hope of salvaging a presidential win. The country, even their natural constituencies, be damned.