Supply Side Growth Mixed.

Factory Orders (November 2013)

– Factory Orders Month/Month +1.8%. Previous was -0.9%
– Factory Orders (ex-transportation) Month/Month +0.6%. Previous was +0.1%.
These are orders for both durable and non-durable goods.  The data is always presented at “overall” and “ex-transportation.”  Transportation means aircraft and because aircraft orders are clustered one must look at both pieces of data.  Factory Orders are a leading indicator of economic activity but are not as important as they used to be because such a small percentage of the domestic economic activity is manufacturing.

ISM Non-Manufacturing Index  (December 2013)

– Composite Index  53.0. Previous was 53.9

This is a survey index which has for components:  new orders, hiring, business activity, and supplier deliveries.  It is to the service sector what Factory Orders is to the manufacturing sector – a leading indicator.