Gains in the non-manufacturing index will help allay fears of a "double-dip" recession, the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com) says in its latest Weekly Chemistry and Economic Trends report.
The Institute for Supply Management (ISM; Tempe, Ariz.; www.ism.ws) reported that the non-manufacturing index (NMI) rose to 53.2% in October, a total that is 1.7 percentage points higher than the August NMI.
In addition to a higher NMI, ACC said that wholesale trade in chemicals also rose this month, further support for avoidance of a double-dip recession.
However, ACC also acknowledged that the most recent batch of economic data was mixed. Among the negative data was a disappointing employment report that showed larger-than-expected job losses. The job losses suggest the labor market "remains weak," ACC said. Also, "the fall of the U.S. dollar is troublesome," ACC adds, despite the fact that it provides a boost to U.S. exporters.
Other data from the JP Morgan Global Manufacturing PMI further support the general slowing trend in the recovery of global industrial activity, ACC says.