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ISM Services Index Soars to Record High

Neena Mishra

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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