ISM services, remains just above 50

The August ISM services PMI was little changed at 51.5 vs 51.4 in July and around the estimate of 51.4. This compares with 48.8 in June and 53.8 in May.

New orders rose to 53 from 52.4 and a touch above the 6 month average of 52.2 but just 8 industries of 18 saw an increase vs 10 in the three prior months. Backlogs though plunged to 43.7 from 50.6. Inventories got back above 50 at 52.9. Prices paid rose slightly to 57.3 from 47, around where the 56.9 six month average is at and remaining well above 50 but also well off its 2022 highs of over 80. Also, 13 of 18 industries said they paid higher prices vs 11 in July and 13 in June. Ahead of tomorrow, the employment component fell to 50.2 from 51.1. but still above 50 for a 2nd month after 5 months below. Just seven of 18 sectors added to their payrolls.

With respect to industry breadth, 10 of 18 industries saw growth, the same number seen in July. Seven saw business contract vs 8 last month with one seeing no change.