Here Comes The ISM Services Report...
Economists estimate that the composite index ticked down to 55.0 in August from 56.0 in July.
However, Societe Generale's Brian Jones thinks its heading for a 2.5 year high of 57.5. Here's his preview:
In contrast to the fairly large number of reports released in advance of the ISM factory survey, economists have but a pair of Federal Reserve Bank canvasses from the Dallas and Richmond districts to use in constructing an estimate for the group's non-manufacturing activity gauge. Though comparatively limited, those two releases point to a further acceleration in service-sector activity in August. Our composite Dallas/Richmond barometer nearly doubled to 11.3 in the current month, the highest reading since March 2012. Using the above to predict the national measure points to a 11/2-point rise to 57.5 - the strongest result since February 2011 (see accompanying chart).
