Highlights
The ISM's non-manufacturing report for November points to slowing growth for the economy. The index slipped 1.7 points to a still very respectable 54.1. But the big negative in the data is a sharp fall in new orders, down 4.6 points to 51.1 for a reading that is just barely above 50 and indicates that only a small fraction more are reporting month-to-month increases than decreases. A slowing in new orders will effect overall business activity in the months ahead.

Another big negative in the report was a jump in prices paid, up 13 points to 76.5 and reflecting the effect of high gas prices. Note that the reading may be a bit inflated as October responses came in before oil prices first approached $90. Still, today's results, together with pressure in input prices on the manufacturing side in ISM data reported Monday, are likely to raise concern at the Federal Reserve which is looking toward an easing in inflation pressures for 2008. Supplier deliveries showed some slowing as they did on the manufacturing side with the index rising 1.5 points to 51.5. But a big plus, as it was on the manufacturing side, is that there are no commodities in short supply. In a note ahead of Friday's jobs report, the non-manufacturing employment index dipped 1 point to 50.8 in a reading, in contrast to this morning's ADP report, that confirms only modest expectations for payroll growth.

Treasuries popped higher in reaction to the headline dip but then edged back on concern over the prices paid index. The degree that high input prices are passed through to consumers will depend on shortages, of which there are none, and constraints in the supply chain, which right now are light and may lighten further should activity slow.

2007 Release Schedule

Released On: 1/4 2/5 3/5 4/4 5/3 6/5 7/5 8/3 9/6 10/3 11/5 12/5 Released For: Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov