The ISM Non-Manufacturing rose to a healthy 55 in December, higher than had been expected. The data shows that the services sector, by far the bigger part of the US economy, continues to do well. This performance contrasts with that of the manufacturing sector: the ISM Manufacturing Index for December slid to the lowest level since June 2009.
The relative resilience of services activity makes it less likely that unemployment could start increasing from here, even though initial jobless claims have been rising somewhat in recent weeks. President Trump’s re-election will depend largely on the state of the US economy, especially now that tensions with Iran have flared up.
