The ISM non-manufacturing index came in at 58.6% for the month of August, 2.6% higher than 56.0% registered in July and substantiality ahead of the consensus estimate of 55.0%.
This reading is the highest reading for the index since the creation of the index in January 2008.
Here are further details from the report:
- Non-Manufacturing Business Activity Index increased by 1.8% to 62.2%
- The New Orders Index increased by 2.8% to 60.5%
- Employment Index increased 3.8% to 57%
- The Prices Index decreased 6.7% to 53.4%
This report combined with mixed-to-positive labor markets reports earlier this morning and a solid ISM manufacturing report earlier this week, proves that the economic recovery continues to gain momentum.
The 10-year note yield has surged to 2.97 % this morning.
Do you think that the market has already priced in a QE tapering ($10 billion to $15 billion) starting this month?
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