Economic Report Card: Dec. ISM Services Index Rises (IVV)
Institute for Supply Management reports its services index rose to 52.6% from November reading of 52.0%.
Today’s increase was the 25th straight month of rises in the index and readings above 50 indicate expansion.
Sub-components include the Business Activity Index at 56.2%, New Orders at 53.2% and Employment at 49.4%.
Major U.S. stock indexes registered early declines in response to the news with the S&P 500 (NYSEARCA:IVV) declining -0.7% after the report.
Bottom line: U.S. economy continues to show slow growth. Non manufacturing industries covered by this report account for approximately 90% of the U.S. economy and so steady growth continues, although today’s report fell slightly short of expectations.
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