When looking for relevant economic data, having to sift through idiot advocacy crap from groups like Reuters is expected. It’s annoying, but, expected. But, for a group like Zacks, it’s pretty disappointing……
ISM for Services Surprises to the Upside
For fun, click on the link and read the URL. Yeh, our economy is strong!!!
After a disappointing ISM for Manufacturing reading for May on Monday, there was much trepidation going into the release of the ISM for Services this morning. The Services index covers more than 90% of the economy so its a much more important gauge as to what is going on in the economy.
Sigh, yes, the services industry is the larger part of the economy. However, they’re pretty much operating with the wealth mining, farming, and manufacturing creates. A pizza delivery boy (service) has nothing to deliver without the pizza being made. (Manufacturing). This isn’t difficult to understand. You can’t serve anything unless first something came from the ground or was manufactured (with stuff from the ground or waters.) An increase in service activity can mean many things ….. a sell off of inventory among many other things.
All the doomsday talk was for naught, however, as it came in better than expected at 53.7, up from 53.1 in April.
Some of the subindices were especially encouraging.
The highly watched New Orders index rose 1.5 points to 56. That was the highest in 3 months. Only February was better at 58.2. Business Activity also rose 1.5 points to 56.5. This was in line with what has been going on the last four months.
The Employment index, however, lagged. It fell to 50.1 from 52 in April. This was the only real negative in the report.
Is all the worry over the economy much ado about nothing?
I don’t know sweetheart, why don’t you tell us what happened to the economy after February’s 58.2 showing? Idiot.
suyts space 
Who said this, inflation is the creation of purchasing power in a country that has a trade deficit?
LOL, IDK who would utter those imbecilic words. Who?
Not your purchasing power. Purchasing power for the one who prints the money, of course. Seen from a states perspective; to pay for imports. When you don’t export goods you export your paper money.
Jaques Rueff – http://en.wikipedia.org/wiki/Jacques_Rueff
Well, right, we’ve made the same observation here many times.
Reblogged this on Climate Ponderings.
The economy is so strong, soon no one will be employed! But the numbers will be perfect.
Somebody made the argument that if Krugman were right and moneyprinting would fix the problem and not be a problem in itself, then why not abolish taxes and directly finance the state with the printing press. As all taxpayers would have much more buying power left this would surely be the best thing for the economy.
No reactions from Monetary Theorists have been recorded.
:D. Of Course Not, other than I think Milton Friedman and Hayek told them that they were crazy, in other words.