Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!
Data: Investing.com; Chart: Axios Visuals

ISM's stronger-than-expected reading of U.S. services sector data grabbed headlines, but IHS Markit's index told a different story.

Flashback: In December, similar divergence popped up in the two indexes' manufacturing reports, but with ISM's data showing much weaker numbers — the worst manufacturing report in a decade.

  • As I wrote then, "One reason for this divergence, highlighted by IHS Markit's chief business economist Chris Williamson in a recent blog, may be that IHS explicitly tells respondents to 'confine their reporting to U.S. facilities/factories.'"
  • "ISM data could therefore be more heavily influenced by global conditions facing ... U.S.-owned companies than the IHS Markit data," Williamson writes.

What it means: A similar phenomenon may be happening with the services sector — ISM's gauge may be stronger because multinational companies are seeing improved business overseas and translating that into their responses for the U.S. survey.

The state of play: The JPMorgan Global business survey data (compiled by IHS Markit) showed a record surge of just over 10 index points in May.

  • China saw especially strong output growth with the combined manufacturing and service sectors rising at the fastest rate since January 2011, making it the only country on Earth to see its readings in positive territory.

Go deeper

Where Trump stands on economic promises

Illustration: Sarah Grillo/Axios

President Trump made lots of specific economic promises to voters during his 2016 campaign, but only fulfilled some of them before the pandemic plunged America into recession.

Why it matters: Trump's economic record and promises for future prosperity will be front and center during this week's Republican National Convention.

Dion Rabouin, author of Markets
Aug 24, 2020 - Economy & Business

Small businesses expect longer, milder impact from pandemic

Reproduced from U.S. Census Bureau; Chart: Axios Visuals

The Census Bureau released new phase two data from its Small Business Pulse survey last week, showing some of the sectors most impacted by the coronavirus pandemic.

What they found: Hiring and rehiring have slowed and businesses now broadly say they expect recovery from the pandemic to take much longer than previously thought.

The rebellion against Silicon Valley (the place)

Photo illustration: Sarah Grillo/Axios. Smith Collection/Gado via Getty Images

Silicon Valley may be a "state of mind," but it's also very much a real enclave in Northern California. Now, a growing faction of the tech industry is boycotting it.

Why it matters: The Bay Area is facing for the first time the prospect of losing its crown as the top destination for tech workers and startups — which could have an economic impact on the region and force it to reckon with its local issues.