These days, there's nothing like a weaker-than-expected economic indicator to get the market going. While the DJIA was down about 50 points before the release of the ISM Non Manufacturing report, the weaker-than-expected headline number spurred an 80+ point rally off the lows. While economists were expecting the November ISM Services to come in at a level of 55.0, the actual reading came in at 53.9. Putting the ISM Manufacturing and ISM Non Manufacturing reports together and accounting for each sector's weight in the overall economy, the combined ISM for the month of November fell to 54.3 from last month's reading of 55.5.
The table below shows the change in each component of the ISM Services report over the last month and last year. As shown in the table, there were broad-based declines in the majority of components this month as only two (Supplier Deliveries and Export Orders) increased. The two biggest declines this month came from Business Activity and Prices Paid. Compared to a year ago, this month's ISM Services report was not quite as bad. As shown, while six components are lower now than they were at this time last year, four are higher. Finally, on a combined basis, this month's ISM (54.3) was up slightly from last year's level of 54.2.