360° Coverage : ISM Reports Point To A Slowdown, But Not Stopping, Of The Economy

2 Updates

ISM Reports Point To A Slowdown, But Not Stopping, Of The Economy

Jan 6 2014, 7:14pm CST | by

The Institute for Supply Management’s Non-Manufacturing Index dropped from 53.9 to 53.0 in December. Although this is a decline, any reading above 50 indicates an expansion of activity in the...

Filed under: news

 
 
 

41 weeks ago

ISM Reports Point To A Slowdown, But Not Stopping, Of The Economy

Jan 6 2014, 7:14pm CST | by

The Institute for Supply Management’s Non-Manufacturing Index dropped from 53.9 to 53.0 in December. Although this is a decline, any reading above 50 indicates an expansion of activity in the service sector. This is consistent with a slightly slower pace of growth at the end of the year than in the third quarter of 2013.

The biggest cause of decline in the non-manufacturing ISM was a contraction in new orders. The new orders index went from expansion in November to contraction in December. The manufacturing new orders index, by contrast, accelerated its rate of growth from November to December.

In both the manufacturing and non-manufacturing sectors, inventories swung to contraction in December. This suggests that the surge in orders and inventory buildup in the non-manufacturing sector was ephemeral. The surge in orders continued in the manufacturing sector, but businesses likely viewed those gains as temporary, given the contraction of inventories.

The big takeaway from the ISM reports is that the third quarter’s rapid economic expansion of 4.1% gross domestic product growth is not likely to be repeated anytime soon. This is not to say that the economy will contract. It is more likely to continue expanding, but at a slightly slower pace, perhaps closer to 3% for 2014 with below-trend growth in the first quarter of 2014.

The views expressed are as of 1-6-14 and are those of Chief Portfolio Strategist Brian Jacobsen, Ph.D., CFA, CFP®, and Wells Fargo Funds Management, LLC. The information and statistics in this report have been obtained from sources we believe to be reliable but are not guaranteed by us to be accurate or complete. Any and all earnings, projections, and estimates assume certain conditions and industry developments, which are subject to change. The opinions stated are those of the author and are not intended to be used as investment advice. The views and any forward-looking statements are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector or the markets generally, or any mutual fund. Wells Fargo Funds Management, LLC, disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds®. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.                                            NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE.
/>

Source: Forbes Business

 
Update
2

7 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce of 20,000 by ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

7 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedi ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Budapest: the 'startup' capital of Eastern Europe
Budapest, Oct 21 (IANS/EFE) Barack Obama, the Dalai Lama and NASA all have one thing in common - the fact that they distributed live videos on Ustream, the app of the Hungarian startup that represents Budapest's potential to become a technology hotspot of Europe's eastern region.
 
 
Developing countries participate in half of world trade
Geneva, Oct 21 (IANS/EFE) The participation of developing countries in world trade accounts for nearly half of global trade, according to a report by the World Trade Organisation (WTO).
 
 
India showcases IPL as driver of economic development
United Nations, Oct 21 (IANS) The success of the Indian Premier League (IPL) in cricket embodies the emergence of sports as a global industry that promotes economic development and job creation in developing countries, India told the UN General Assembly (UNGA) Monday.
 
 
Cuba dispatches two new medical brigades to Africa
Havana, Oct 21 (IANS/EFE) Cuban President Raul Castro has announced that two health brigades from the island will be dispatched to Liberia and Guinea Conakry this week to collaborate in the fight against the Ebola virus disease epidemic.
 
 
 

Latest from the Network

1,074 new dengue cases in Chinese province
Beijing, Oct 18 (IANS) China's Guangdong province has reported 1,047 new cases of dengue fever, health authorities said Saturday. Six people have already died in Guangdong -- five in Guangzhou and one in adjacent...
Read more on Business Balla
 
Blake Lively 'always' wanted to be mum
Blake Lively has ''always'' wanted to be a mother. The 27-year-old actress is expecting her first child with husband Ryan Reynolds and she admits she's been dreaming of this moment since she was a youngster. Speaking...
Read more on Celebrity Balla
 
Kris Jenner 'torn apart' by Bruce's new relationship
Kris Jenner feels ''torn apart and angry'' that Bruce Jenner is dating her former assistant. The 58-year-old matriarch split from the 64-year-old Olympic gold medalist last October following 22-years of marriage but is...
Read more on Celebrity Balla
 
Cheryl Fernandez-Versini won't move to France
Cheryl Fernandez-Versini doesn't want to move to her husband's home country of France. The 'X Factor' judge, 31, who comes from Newcastle, is adamant she won't be relocating any time soon to suit her new spouse Jean-...
Read more on Celebrity Balla
 
Lance Bass sets wedding date
Lance Bass has set a date for his wedding. The former *NSYNC singer and his partner Michael Turchin, who have been dating for two-and-a-half years, are to tie the knot on December 20, 2014, a representative for the...
Read more on Celebrity Balla
 
Nepal avalanche toll reaches 39
Kathmandu, Oct 18 (IANS) At least 39 climbers died while hiking on a key Nepali route after it was hit by a major snowstorm and avalanches earlier this week, BBC reported Saturday citing officials. Over 350 stranded...
Read more on Politics Balla
 
Jake Gyllenhaal says society is complicit in 'nightcrawling'
Jake Gyllenhaal says almost everybody in society ought to relate to his new movie 'Nightcrawlers'. The eagerly-awaited film concerns those people who monitor police scanners and then race to crime scenes to film eye-...
Read more on Movie Balla
 
India eves look for first win in AFC U-16 qualifiers
Dhaka, Oct 18 (IANS) India will hope to register their first win of the 2015 Asian Football Confederation (AFC) Under-16 Women's Championship qualifiers when they take on hosts Bangladesh in a crucial encounter at the...
Read more on Sport Balla
 
Moyes mulling return to management
London, Oct 18 (IANS) Former Manchester United manager David Moyes said that he is ready to revive his managerial career six months after being sacked by the 'Red Devils'. "I am ready to return. I have enjoyed the...
Read more on Sport Balla
 
Ebola fears loom over Ghana hosting AFCON
Accra (Ghana), Oct 18 (IANS) The Ghana Medical Association (GMA) cautioned the government Saturday against hosting the 2015 African Cup of Nations (AFCON), despite a request by the Confederation of African Football (...
Read more on Sport Balla