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ISMServicesCollapseToLowestIn 4 Years; EmploymentWorstSinceLehman
ISMServicesheadlineindexcollapsedto 51.6 (missingexpectationsof 53.5) toitslowestsinceFebruaryof 2010. We are sure many will proclaim this as "weather-related" but remember the strong performance of the Manufacturing print. Respondents worried about weather, Obamacare, and oil prices… as the employmentsub-indexcrashedfrom 56.4 (highestsinceNov 2010) to 47.5 (lowestsince Mar 2010) –thebiggestdropsinceLehman!
Big miss and lowest print in 4 years…
ISM Services Employment craters…
And before you blame the weather, the Manufacturing and Services data do not converge on that opinion…
Respondents worried about weather, Obamacare, and oil prices…
"Steady — trending slightly lower." (Finance & Insurance) "Economy still plugging along, but at a very slow rate of growth." (Professional, Scientific & Technical Services)"The Affordable Care Act is creating significant financial uncertainty to healthcare organizations. With little warning, the negative impact on revenue has been unprecedented." (Health Care & Social Assistance) "Passage of the federal budget and subsequent funding appropriations are allowing government agencies to start spending funds on planned new projects." (Public Administration) "Oil prices continue creeping upwards along with chemicals." (Utilities) "Cold winter weather has had a major affect on us when compared to year-over-year." (Wholesale Trade) "Winter weather is slowing down our projects; it should only be until April." (Construction)
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