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4 May 2016
US: Solid expansion in the service sector - Wells Fargo
Today’s report on ISM non-manufacturing showed the strongest numbers for the year. According to analysts from Wells Fargo, the numbers signaled a solid expansion in the service sector.
Key Quotes:
“Besting consensus estimates, the ISM non-manufacturing index rose 1.2 points to 55.7. The closely-watched employment component rose to 53 during the month, suggesting upside risks to the nonfarm payroll estimate.”
“Although the business activity index slowed, the level remains elevated at 58.8. The new orders component jumped to a six-month high, suggesting continued improvement ahead.”
“Despite the lackluster ADP April reading, the employment component increased 2.7 points to 53 in April. The positive employment reading, which is now in line with the trend in nonfarm payrolls and initial jobless claims, suggests there are upside risks to our April nonfarm payroll estimate.”
Key Quotes:
“Besting consensus estimates, the ISM non-manufacturing index rose 1.2 points to 55.7. The closely-watched employment component rose to 53 during the month, suggesting upside risks to the nonfarm payroll estimate.”
“Although the business activity index slowed, the level remains elevated at 58.8. The new orders component jumped to a six-month high, suggesting continued improvement ahead.”
“Despite the lackluster ADP April reading, the employment component increased 2.7 points to 53 in April. The positive employment reading, which is now in line with the trend in nonfarm payrolls and initial jobless claims, suggests there are upside risks to our April nonfarm payroll estimate.”