US ISM nonmanufacturing index posts strong advance in October

Contrary to U.S. ISM manufacturing index, nonmanufacturing data showed somewhat robust improvement with higher numbers in almost sub indexes and higher than market expectation.

In a previous post, I said subdued or deteriorated employment index of ISM manufacturing did not suggest upcoming recession in U.S. economy because manufacturing sector does not representative for U.S. labor market and recent sentiment in factories turned to improve.

The employment in service sector occupying more than 70% jobs in U.S. seems somewhat solid its ISM sub index improves toward near high.

While service industries are concerned by how long they lead whole economy, economic momentum appears somewhat firm or solid for now. Improving employment environment could lead higher wage. Let's wait and see upcoming NFP data.

ISM Nonmanufacturing Survey (SA)	Oct	Sep	Aug	Oct'14	2014	2013	2012
Composite Diffusion Index	59.1	56.9	59.0	56.9	56.3	54.6	54.6
Business Activity	63.0	60.2	63.9	60.5	59.7	56.7	57.6
New Orders	62.0	56.7	63.4	59.3	58.6	55.8	56.5
Employment	59.2	58.3	56.0	58.3	54.9	54.3	53.5
Supplier Deliveries (NSA)	52.0	52.5	52.5	49.5	51.8	51.7	50.6
Prices Index	49.1	48.4	50.8	52.8	56.8	55.6	59.3