efore
BuzzCharts reveals the latest killer ISM Non-Mfg numbers, let us tell
you a little something about the Non-Manufacturing ISM.
The ISM Non-Mfg is
an index that covers 17 industries, 4 of which are subsets of the services
industry. The index is based on 370 buying centers nationwide — a broad
source of information. It is also very accurate because it weighs each industry
based on its contribution to GDP. Finally, it is a very timely index as
it is released on the first of every month.
Enough broccoli —
now it’s time for the dessert. The most recent ISM Index for the service
economy is not only the highest it’s been this year, it’s the highest it’s
been since this index was created by economists more than six years ago.
The index, now at 65.1, is 5.9 points higher than when it was first launched
in July 1997, which is a 9 percent increase. It is now 24 points higher,
a 36.8 percent increase, since it’s trough in October of 2001. It is also
2 points higher than its highest level during the boom — October of
1997 — which is calculated as a 3 percent increase.
In short, the data
indicates that in July 2003, the service sector (no, not burger flippers
— this is business-to-business services, like software and engineering
and accounting services) exploded out of the gate. The Bush Boom has indeed
begun.
—
Jerry Bowyer is a radio and television talk show host and the author of
the up-coming book, The Bush Boom: What the Data Says About Our Mis-Underestimated
Economy. He can be reached through www.BowyerMedia.com.
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efore
BuzzCharts reveals the latest killer ISM Non-Mfg numbers, let us tell
you a little something about the Non-Manufacturing ISM. 