The “Soft Data” Euphoria Is Over: Non-Manufacturing ISM Slides To Pre-Election Lows

Wednesday, April 5, 2017
By Paul Martin

by Tyler Durden
Apr 5, 2017

Stick a fork in the soft-data decoupling.

Moments after PMI reported the worst Service PMI since September, the Non-manufacturing ISM also missed, with the headline number dropping from 57.6 to 55.2, the lowest since October, or before the Trump election.

There were declines in three of four key components as business activity and new orders dropped, but most notable was the slide in the Employment sub-index which barely avoided contraction, sliding from 55.2 to only 51.6, the lowest since August, and refuting the post-ADP euphoria. Furthermore, a signal that the reflation trade is also over, the Prices Paid index tumbled by the most in 4 years.

Business activity fell to 58.9 vs 63.6 prior month
New orders fell to 58.9 vs 61.2
Employment fell to 51.6 vs 55.2
Inventory change fell to 48.5 vs 52.0
Prices paid fell to 53.5 vs 57.7
Backlog of orders fell to 53.0 vs 54
The rising subcomponents:

Supplier deliveries rose to 51.5 vs 50.5
Imports rose to 56.5 vs 51.0
New export orders rose to 62.5 vs 57.0
Inventory sentiment rose to 65.0 vs 64.5

The Rest…HERE

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