US: ISM non-manufacturing increases upside risks in NFP - Wells Fargo

According to analysts from Wells Fargo, the recovery in the ISM non-manufacturing index signals that the economy continues to expand at a moderate pace.

Key Quotes:

“After a sharp slowing in May, the ISM non-manufacturing index more than recovered in June. At 56.5, the index signals the economy continues to expand at a moderate pace. The hiring index moved back above 50.”

“After broad deterioration last month, the ISM nonmanufacturing index bounced back in June to 56.5. Along with an increase in the manufacturing index reported last Friday, a weighted average of the ISM indices points to the strongest pace of growth since last October.”

“After a sub-50 reading last month, the employment component recovered to 52.7. The increase suggests some upside risk to our call for a 162,000 rise in payrolls this Friday.”