ISM services/Oil price jump

The September ISM services PMI rose to 54.9 from 51.5 and that was well above the estimate of 51.7 and the highest since February (measuring direction of change, not degree).

The internals though were mixed. New orders did jump by 6.4 pts to 59.4 but backlogs remained below 50 at 48.3, though up 4.6 pts m/o/m after losing 7 pts in August. Inventories jumped to 58.1, up 5.2 pts. The employment component softened to 48.1 from 50.2, and thus back under the key 50 level ahead of tomorrow’s payroll figure. Supplier deliveries rose back above 50 (implying slower deliveries) at 52.1. Prices paid was up 2.1 pts at 59.4, the highest since January.

With regards to industry breadth, 12 industries saw growth vs 10 in August. 5 said their business contracted vs 7 in the month before.