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US Non Manufacturing PMI Improves

James Boston
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A wide ranging data update this afternoon is presenting some confirmation of the broad nature of the recovery in the US. Following yesterday’s manufacturing update the relevant agencies are now publishing their non-manufacturing data. Markit Economics has released it’s Purchasing Managers Index (PMI) for the Services sector, relating to the month of August the reading now stands at 59.5, this compares to 60.8 in July and an expectation of 58.5. The Composite PMI therefore becomes 59.7 in comparison to the previous month’s 60.6 and an analyst anticipated figure of 57.7. The headline number of the day is the Non-Manufacturing PMI from the Institute of Supply Management, this is currently reading at 59.6 up from July’s 58.7 and beating the market expectation of 57.7.

Ahead of tomorrow’s key Non-Farm Payrolls and official Unemployment Rate releases there has been some minor jobs market data published this afternoon. The Department of Labor has published it’s Unit Labor Cost statistic for the second quarter of this year, according to this the cost of hiring has fallen by -0.1% on the quarter compared to an increase of 11.5% in the first three months, markets anticipated a rise of 0.5% to round out the second part of H1.

Layoffs, as measured by the Challenger Job Cuts survey, are running at 40.01k when measured year on year to August, the previous reading of this in July was 46.888k. The overall employment delta for the month is measured by Automatic Data Processing’s Employment Change statistic, this is showing an increase of 204k jobs in the month of August compared to 212k new jobs in July, the market expectation here was for a reading of 220k.

Initial Jobless Claims for the week ended 29th August have been announced as 302k compared to 298k the prior week, while Continuing Jobless Claims are now running at 2.464M to the week ended 22nd August, the prior week’s number was 2.527M.

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