Via Stephen Stanley at Amherst Pierpont Securities:
The ISM non-manufacturing survey data were broadly steady in January. The headline measure was essentially unchanged at 56.5. The new orders and production components were down 2 points and half a point respectively. In contrast, the employment gauge increased by 2 points. After a somewhat softer year, on average, in 2016, the November, December, and January figures have been more in line with the 2015 averages. Meanwhile, the prices gauge jumped by 3 points to 59.0, the highest reading since 2014.
Factory orders were firmer than expected in December, posting a 1.3% rise, as the petroleum industry posted a 14.0% spike. In terms of the tracking estimate for Q4 GDP, the factory inventory figures imply a 0.1 percentage point upward revision to +2.0% (and an offsetting downward revision to Q1).