Tuesday, February 05, 2008
ISM services survey
... the Institute for Supply Management reported that its January nonmanufacturing index moved to a reading of 41.9, from December's 54.4.
...The report showed still problematic inflationary pressures in the non-manufacturing sector, with the prices index at 70.7, from the prior month's 71.5.
The employment index for January came in at 43.9, from December's 51.8.
The report also said that the non-manufacturing new orders index stood at 43.5. It was 53.9 in December.
more from barry ritholtz and a chart from paul krugman. anyone who thought we weren't headed into recession is probably rethinking their case this morning.
UPDATE: via jeff at dash of insight, some important context for the number. there is reason for skepticism on the importance of any single reading of the services survey. even though i think it clear that a marked slowdown/recession with deflationary implications is underway and that it has the potential to be severe, it may not be quite as bad as this single report suggests -- and it may well provide an entry point on equities that probably put in a multimonth low on january 22 and 23.