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U.S. ECONOMICS: CIBC On Earlier Factory Orders, ISM Non-Manf

Canadian bank CIBC (CM.TO, CM) admits to "a bit" of a disappointment in the ISM services index for the U.S. in December, but says it's not one that's likely meaningful in terms of its growth forecast. It notes the dip to 53.0 leaves it at the low end of an essentially sideways moving range of 53-56 that has generally prevailed since mid 2010. Fluctuations in that range do not appear to be "particularly insightful" as a predictor of quarterly GDP, CIBC says.

CIBC adds the ISM services data is "slightly supportive" for fixed income markets, but it is still looking for about 2.5% real GDP growth in Q4 for the U.S., a "solid result given that its coming off a huge Q3 pace."

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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