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If you are looking for something positive to say about this morning's release of the ISM Non-Manufacturing report, you are not going to find much here. Besides the moderate jump in the employment component (50.1 to 54.7), most everything else was just plain bad. With respect to the headline number, the overall reading fell from 53.7 down to 52.2. This represents the lowest level since February 2010. Even worse, if we combine the overall non-manufacturing and manufacturing readings on a weighted basis, the level for June (52.0) was the lowest since January 2010.

Looking at the individual components of the report, there was an even split between increases and decreases relative to last month. Relative to last year, even though the headline reading was down, more subcomponents were higher (six) than lower (four). Two subcomponents that were notably weak were Business Activity and New Orders. Even though both components were still above 50, they hit their lowest levels since 2009 (see charts below). Finally, the only component of this month's report that was under 50 was export orders, which is primarily due to a stronger dollar and weak economic growth outside of the United States.

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Source: ISM Non-Manufacturing Hits Lowest Level Since February 2010