What to expect from key US ISM nonmanufacturing? - Nomura
Analysts at Nomura noted the key data this week and offered a preview of Tuesday's key ISM nonmanufacturing index that they expect to decline slightly to 58.6 in October, a still-elevated level consistent with continued Q4 momentum.
"The ISM non-manufacturing survey increased to 60.1 in October, the highest reading since 2005. However, persistent weather-related disruptions in the month likely kept the supplier delivery index unsustainably elevated. Thus, we expect some pullback in November."
"However, a reading of 58.0 would remain above the prehurricane level of 55.3 from August, consistent with other survey indicators that have shown material improvement since the summer. Moreover, the new orders index, unaffected by recent inclement weather, jumped sharply in September and remained elevated in October, signaling positive momentum to close out 2017."