The ISM Service Sector suffered its third-largest decline on record last month as it shockingly plunged into contraction territory (readings below 50.0). Last month’s massive -6.9 point drop was due in large part to a collapse in new orders (bottom chart), yet weakness was still broad-based as eight of its ten components showed declines. While services was one of the few remaining economic bright spots prior to this report, it has now joined the large and growing list of recessionary warning flags.
Eli Petropoulos, CFA – Sr. Market Analyst
