ISM Services Index Comes In Well Above Expectations in December 2012
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January 4, 2013 - 10:12am
Written by Steven Hansen
The December 2012 ISM non-manufacturing (aka services) index continues its 2+ year growth cycle, and improved from 54.7 to 56.1 (above 50 signals expansion). This was much better than the market forecast of 53.5 which was expecting a decline.
The economically intuitive components of this index remain in expansion territory, and is signalling the economy is not near a recession in December 2012. There are two sub-indexes in the NMI which have good correlations to the economy - the Business Activity Index and the New Orders Index - and both have good track records in spotting an incipient recession. Both are well inside expansion territory.
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