The ISM non-manufacturing survey came in this morning at 56 vs consensus expectations of 55. And this after a strong January showing. Here are some of the details, courtesy of Bloomberg...
"New orders are up a very sharp 3.8 points to 58.2 with backlogs posting a 5.5 point jump to a very strong 55.0. New orders coming in and old orders piling is a good mix for the employment outlook.
And non-manufacturers are already hiring, at 57.2 which may be down three tenths from January but is still an exceptionally strong rate of monthly employment growth."
As if this rally needed any help from stronger economic data, this is just more icing on the cake for the bulls today. Exactly what I said yesterday in our discussion "Stocks Waiting For (Fill in the Blank)."
About the non-manufacturing ISM: Surveys more than 375 firms from numerous sectors across the United States, including agriculture, mining, construction, transportation, communications, wholesale trade and retail trade. The non-manufacturing composite index has four equally weighted components: business activity (closely related to a production index), new orders, employment, and supplier deliveries (also known as vendor performance).