Dec 07 Non Manuf ISM PLunge not real

Discussion in 'Economics' started by Digs, Feb 8, 2008.

  1. Digs


    Why, beacused ISM change the formula for its calcultion.

    But market sold off 3%, so I expect mkt to rally back next week, hard !!

    ..."New Measure

    Today's U.S. services report included a new composite index to reflect changes in current measures of business activity, new orders, employment and supplier deliveries. The contribution from each sub-index is equal.

    The new composite index was 44.6 in January. It would have been 53.2 in December, according to Bloomberg calculations based on a formula provided by ISM. "...
  2. that news was out all day and the market still sold off. why would it make a diff next week?
  3. The new calculation was announced in advance, though. Bloomberg and other places had already written about it. It was no surprise.

    It was still a very poor ISM number, even the market over-reacted a little.