The ISM Services report came in at 56 today confirming the rebound seen in the Manufacturing Index last week. Underlying components were somewhat mixed, but with a positive tilt. Employment was down, but still expanding while new orders and business activity were both up substantially from the June reading. Price paid were also up 7.6 points.
56 is the highest reading since February and certainly not consistent with a recessionary environment. As you can see from the chart below this is more sideways movement in the economy. It’s consistent with muddle through in my opinion. It’s not bad and it’s not great.