US: ISM nonmanufacturing index forecasted to increase in September to 52.0 from 51.4 - Nomura

Research Team at Nomura, notes that the US ISM non-manufacturing index declined over 4 points to 51.4 from 55.5, falling well below expectations.

Key Quotes

“The details were not much better, as the business activity index dropped sharply to 51.8 from 59.3 and the new orders index declined by close to 9 points, to 51.4 from 60.3. Consumer activity and retail employment growth was soft in August, but there are reasons to believe that the pullback in demand in August should be temporary. Consumer sentiment, on balance, improved in the latest readings, and we expect vehicle sales and employment reports next week to show that the economic performance improved in September. Therefore, we forecast an increase in the ISM nonmanufacturing index in September to 52.0 from 51.4.”