Institute for Supply Management will come out with the ISM Manufacturing index on January 3, 2007. It is expected improve from 49.5 to 50.5. The number will show trouble for manufacturing continues. The real estate sector is stabilizing but staggering number of job losses is causing worry among the Fed members.
Business services, education and health services – all are seeing rise in employment and hiked up prices. But the string is stretched beyond the elastic limit. It can snap, experts say. The next big news will be from Business services, education and health services, and leisure and hospitality as the cyclical down turns hit them one by one. The million-dollar question is will manufacturing sector, business infrastructure investments and real estate turn around to compensate for the slack. If they do, we will see a soft landing. Otherwise we are headed for a deep recession.
