US ISM Non-manufacturing adds to evidence that the economy is growing at a slower pace - Wells Fargo

Today’s data showed a decline in the PMI Service sector and also in the ISM Non-manufacturing index that dropped to 56.7. According to analysts from Wells Fargo, the ISM index remains consistent with the economy growing at a solid rate, but momentum has slowed. 

Key Quotes: 

“The ISM non-manufacturing index fell to 56.7 in January, adding to the evidence that the economy is growing at a slower pace. Current activity slowed over the month, with respondents noting negative effects of the government shutdown on balance.”

“The employment index edged up to 57.8, consistent with the robust hiring exhibited by last Friday’s payroll report. Backlogs inched higher, while input prices rose more quickly."

“Assuming the shutdown doesn’t resume later this month, the ISM non-manufacturing index may regain some ground, but slower global growth and fading fiscal stimulus suggest the mid-50 readings are likely to become the norm as the year progresses.”