The ISM Non-Manufacturing Index came in much higher than expected - both a good sign for the US economy and a point of concern for Fed rate watchers

The ISM Non-Manufacturing Index came in much higher than expected - both a good sign for the US economy and a point of concern for Fed rate watchers. The important services index reached 58.7 in July, well above June's 56 reading and the 56.5 predicted by analysts. The results also mark the highest reading since January 2008 (when the index was launched). All 16 services industries reported growth. The biggest component increases came from New Orders and Backlog Orders. What's more, the Employment Index component climbed by 1.6% from the prior month, while the Prices Index decreased 0.3% during the same period. The prices decrease is encouraging as it continues to show a lack of inflationary pressure. (VIEW LINK)