US ISM Non-manufacturing: Momentum picks up - Wells Fargo

The ISM Non-manufacturing index was released today: it rose from 53.9 to 55.3. Analysts from Wells Fargo, point out that momentum is up from July but below the 6-month average in most key measures. 

Key Quotes: 

“Non-manufacturing business activity appears to be settling in to a respectable expansion. Partially recovering from the sudden drop in July, the headline ISM non-manufacturing index rose to 55.3—in line with its average over the past six months (56.0).”

“Most sub-indices followed the headline, recovering from July but remaining more subdued than in June."

“Gauges of employment and prices paid contrasted the rest, as they rose higher in August and also higher than the 6-month average. The recent climb in the inflation gauge is encouraging."

“Today’s report had two key takeaways. First, the slowdown in July was apparently temporary. Second, the “economy is chugging along,” according to one comment that summarized the rest and most of the subcategories.”