US: ISM non-manufacturing unchanged in December – Nomura

Research Team at Nomura notes that the US headline ISM non-manufacturing index was unchanged at 57.2, higher than market consensus but in line with Nomura’s forecast (Nomura: 57.2, Consensus: 56.8).

Key Quotes

“This reading is positive, with steady reading across most subindexes. Business activity index remained elevated at 61.4, suggesting healthy activity in the sector. Forward-looking indicators also drew a positive picture, implying that momentum may continue in the near term. New orders index jumped to 61.6, and backlog of orders index inched down to 48.0 but remained steady. Employment index was at 53.8 down 4.4pp from the prior month, but it is still an elevated reading, consistent with ADP employment report, which showed steady gains in the service providing sector.”