US composite ISM points to stable growth for US employment in April

GECODIA Team

ISM Employment index is in line with a stable growth in private NFP.

US composite ISM points to stable growth for US employment in April
The ISM composite Employment index* is in line with a stable growth in private NFP (cf. chart). The composite has been negatively impacted by the sharp drop in the services ISM employment index.

Economic Impacts
The signal is the similar to the one given yesterday by the ADP report for April 2011. To sum up, odds are at best for a stable growth for private NFP (around +200k on a monthly basis). This level is strong enough to bring down the unemployment rate in the US and to provide a significant support to income growth. But it also underlines that the US economy continues to grow slowly.

* calculation: weighted sum of Manufacturing ISM and non-Manufacturing ISM employment indexes using value added share of total GDP.


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