Nick Nasad
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US ISM Services Index Jumps to Highest Reading Since Inception in 2008

The US data continued to be strong this week as the ISM Non-Manufacturing (Services) index jumped to 58.6 for the month of August, vs 56.0 in July, and compared to a consensus estimate of a fall to 55.2. That reading was the best of the survey's existence (since 2008).

  • Looking at the report we have a nice 3.8 point increase in the Employment sub-index, which is now at 57.0.
  • We should remember that most of the US economy is the services sector, so that should be a good sign for tomorrow's NFP report.
  • Next, we also see very strong new orders and business activity, at 60.5 and 62.2 respectively.

Just one more data point to go before the market starts to coalesce around a final verdict for September tapering.

- Nick