Wow, quite a doozy this morning from the ISM Non-Manufacturing figure - 52.8.  This is a huge drop from 57.3 in March, and way below expectations of 57.8.  While Monday's ISM Manufacturing gets all the press, that is only 11% of the economy, whereas the service sector dominates.  We will have to see in 30 days if this was an anomaly of some sort.  Prices paid dropped from 72.1 to 70.1 - interesting how this report is the polar opposite of manufacturing.

On the plus side... the slowdown in many economic figures the past 8 weeks sets us up well for QE3! Booyah!

Full report here.

WHAT RESPONDENTS ARE SAYING ...
  • Business conditions [remain] unchanged. No supply impact from the Japan earthquake/tsunami, but continue to track with the supply base. (Management of Companies & Support Services)
  • Revenues are picking up slowly, but the growth is positive as compared to last month and the same month last year. (Real Estate, Rental & Leasing)
  • Looking forward with reserved caution. Cost of goods by this fall are a big worry. (Accommodation & Food Services)
  • Continuing economic uncertainty will curtail or delay project spending for the immediate future. (Educational Services)
  • Fuel prices continue to be challenging and in addition to shipping, are influencing the cost of materials. (Public Administration)
  • We are seeing price increases in many areas, and the lead times are stretching out. Our business activities are improving at a moderate rate. (Wholesale Trade)
ISM NON-MANUFACTURING SURVEY RESULTS AT A GLANCE

COMPARISON OF ISM NON-MANUFACTURING AND ISM MANUFACTURING SURVEYS*

APRIL 2011

Non-ManufacturingManufacturing
IndexSeries

Index

Apr.

Series

Index

Mar.

Percent

Point

Change

DirectionRate

of

Change

Trend**

(Months)

Series

Index

Apr.

Series

Index

Mar.

Percent

Point

Change

NMI/PMI52.857.3-4.5GrowingSlower1760.461.2-0.8
Business Activity/Production53.759.7-6.0GrowingSlower2163.869.0-5.2
New Orders52.764.1-11.4GrowingSlower2161.763.3-1.6
Employment51.953.7-1.8GrowingSlower862.763.0-0.3
Supplier Deliveries53.051.5+1.5SlowingFaster1360.263.1-2.9
Inventories55.555.50.0GrowingSame353.647.4+6.2
Prices70.172.1-2.0IncreasingSlower2185.585.0+0.5
Backlog of Orders55.556.0-0.5GrowingSlower461.052.5+8.5
New Export Orders53.559.0-5.5GrowingSlower862.056.0+6.0
Imports57.050.0+7.0GrowingFrom Unchanged155.556.5-1.0
Inventory Sentiment57.567.0-9.5Too HighSlower167N/AN/AN/A
Customers' InventoriesN/AN/AN/AN/AN/AN/A40.539.5+1.0