The lead chart is from the Non-Manufacturing ISM®Report On Business® for November.
- The overall index fell slightly from 54.7 to 53.9.
- Production took a dive from 57.1 to 51.6.
- New Orders rose from 55.6 to 57.1.
Order backlog, is down for the second month. So unless new orders keep pouring in businesses will not be able to rely on the strength of backlogs to keep things humming.
Word about Diffusion Indexes
These reports are skewed by the fact that only direction, not size matters.
For example, a firm hiring 3 workers will offer a firm firing 350 workers.This construct applies to all of the line items, not just employment.
For manufacturing discussion, please see Another Recession Warning: ISM Contracts 4th Month.
Trump's trade policies have been an absolute disaster and have contributed to these slowdowns.
Mike "Mish" Shedlock