Editor's Note: The excerpt below is from a larger institutional note written by Hedgeye CEO Keith McCullough.
ISM Services prints worst since 2010.
...Drops -4 pts sequentially with Business Activity and New Orders dropping a remarkable -7.5 pts and -8.9 pts, respectively. Employment down -0.7 and barely holding positive at 50.7 as well.
From potential overheating to flirting with contraction in a single month with New Orders posting its largest sequential decline in 104 months. To review, if you broadly divide the economy into Services & Goods and do the data dependence math for August:
- GOODS = Contraction
- SERVICES = worst print since 2010
If you’re more into data point breadth, here’s a list that “data dependent” hawks should obfuscate or ignore:
- Chicago PMI = Worse
- ISM Services = Worse
- ISM manufacturing = Worse
- Markit Manufacturing PMI = Worse
- Bloomberg Consumer Confidence = Worse
- NFP = Worse
- Auto Sales = Worse
- Labor Market Conditions = Worse