Nick Nasad
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Great Graphic: ISM Employment Indexes vs Change in NFPs

With the ISM manufacturing PMI posting a very strong reading of 57.3, and the employment sub-gauge at 56.5, here is a nice graphic showing the connection during the last 10 years between the employment sub-gauges within the ISM manufacturing and services indexes and the non-farm payroll report (all 3 numbers are 3-month moving averages).

As we can see the 2 certainly have a decent correlation, and as both indexes have turned up of late in 2013 so has the NFP report. We will await the Services PMI later this week, and looking at the employment sub-gauge for further clues to guide us for Friday's November pay-roll report.