Nov 6, 2019

The U.S. services sector bounces back

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Data: Institute for Supply Management; Chart: Andrew Witherspoon/Axios

The U.S. services sector roared back in October, with the ISM's non-manufacturing report jumping to 54.7, up from 52.6 the month before, and beating expectations.

Why it matters: The services sector makes up almost 70% of the U.S. economy and has been consistently trending lower, following the manufacturing sector for most of this year.

  • October's pickup, combined with an improvement in ISM's manufacturing reading, suggests the data may have hit a floor.

The report's details also were strong:

  • Business Activity rose 1.8 points on the month to 57.0
  • Prices Paid fell 3.4 points to 56.6
  • New Orders was two higher at 55.6
  • Employment added 3.4 points, up to 53.7

Go deeper: How the China trade war threatens U.S. manufacturing jobs

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Key manufacturing index contracts for the fourth straight month

The ISM's November manufacturing report released Monday contracted for the fourth straight month.

Why it matters: It's an unexpected decline as most industry watchers expected the reading to rise. Surveys have shown manufacturing output declining for more than a year.

Go deeperArrowUpdated Dec 2, 2019

Two key U.S. manufacturing indexes have diverged sharply

Data: Investing.com; Chart: Lazaro Gamio/Axios

The ISM's November U.S. manufacturing index got all the headlines with a fourth straight reading showing the industry in contraction, but IHS Markit's index was also released Monday and told a very different story.

What's happening: Both surveys are well respected by investors and economists, but follow different methodologies. This seems to have created a widening divide in which IHS Markit's data is showing a solid recovery in U.S. manufacturing while ISM's is showing further deterioration.

Go deeperArrowDec 3, 2019

Wilbur Ross says December tariff hike likely without China breakthrough

Commcerce Secretary Wilbur Ross during a cabinet meeting on Oct. 21. Photo: Alex Wong/Getty Images

Commerce Secretary Wilbur Ross said Monday on Fox Business that time is running out for the U.S. and China to agree on a trade deal before Dec. 15, when the U.S. is set to impose an additional 15% tariff on around $156 billion worth of Chinese goods.

Why it matters: Future tariff hikes would likely further squeeze the U.S. and Chinese economies, dragging down already declining business investment in the U.S. and possibly pushing the manufacturing industry into a deeper recession.

Go deeperArrowDec 2, 2019