Thursday, June 3, 2010

ISM services index keeps rolling ahead

The ISM Non-Manufacturing Index is a survey that measures economic activity in the broad-based service sector.  For the third-straight month, the index held steady at 55.4, signaling that growth in the service sector is neither robust nor tepid.   A reading of 50 marks the line between growth and contraction.

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There’s really not a whole lot to say about today’s report except that Europe’s debt crisis is yet to have any impact on the U.S., nor would we expect any negative effect this quickly.

What the ISM survey is telling us is that the recovery that started in manufacturing has spread to the service sector, which is growing modestly.

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