US Services Industry Stabilizes: Firms Warn “Margins Squeeze Acting As A Brake On Employment”

Business activity in the US Services industry accelerated to its fastest since Nov 2015, according to the ‘soft’ survey data from Markit, but some firms noted that squeezed margins had acted as a brake on employment growth at their business units in January. ISM Services slipped lower with unadjusted new orders tumbling to their lowest since Jan 2016.
The Trump Bump appears to have stalled…
And unadjusted new orders tumbled…
And The ISM Breakdown shows more stagflation…
ISM Respondents are mixed but uncertainty is a theme:
“Demand is relatively flat; down about 2 percent from December to January.” (Agriculture, Forestry, Fishing & Hunting) “Strong second half. Exceeded 2016 revenue and earning targets. Q1 [is] looking strong so far. Cautiously optimistic for 2017.” (Finance & Insurance)
“Current conditions stable. Uncertainty with Trump presidency and how it is going to impact health care.” (Health Care & Social Assistance)
“The overall outlook from our perspective is that we are seeing an uptick in activities, both in the energy sector and the construction side of our business.” (Mining)
“Market conditions are good with lower prices on most animal proteins, grains, and dairy prices. Butter still uncertain with increased demand [for] natural fats.” (Accommodation & Food Services)

This post was published at Zero Hedge on Feb 3, 2017.