US: Stronger ISM non-manufacturing data – TDS

Analysts at TD Securities note that the US ISM non-manufacturing index posted a stronger-than-expected jump for October, rising to 54.7 (TD: 53.7; market 53.5).

Key Quotes

“This reflects an improvement following the sharp and unexpected drop to 52.6 in September. The details were also encouraging, with key components in new orders, employment and activity rebounding to fairly decent levels.”

“All in, the recession alarm that was set off after the last report was likely overdone, with the index now tracking closer to fair levels given the current stage of the economic cycle.”