The rise in the ISM services index in August suggests that the prior strength in July was not only due to temporary effects from the FIFA World Cup, and leaves our weighted-average ISM index consistent with health GDP growth despite the decline in the manufacturing index. The main concern for the Fed is that the further rise in the ISM services prices paid index implies that core inflation will accelerate rather than slow.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.