Octobers ISM NMI (Non-Manufacturing Index) report showed positive movements for the most part with one disturbing one (seen in the ISM PMI as well) which was prices. The ISM NMI measures the level of a diffusion index based on surveyed purchasing managers, excluding the manufacturing industry and is considered a leading indicator of economic health. The forecast for October called for an index reading of 54.5, but the actual headline number was 54.3 (slightly up). Though this wasn't as strong as the Manufacturing index it is still an improvement.
New orders and business activity were much stronger and inventories were declining which was a positive sign.
What worries me the most is the spike in prices we are seeing over the past few months. This cost gets passed on to the consumer in an already tough economy. If passed on, this could weigh on the consumer going forward producing a weaker Christmas season and economy overall.
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