Services sector sensitive to economic fluctuations

Sources: Bloomberg, Institute for Supply Management, and Wells Fargo Investment Institute. Monthly data from January 1, 2007 to September 30, 2021. The Institute for Supply Management (ISM) Manufacturing Index® is a composite index based on five indicators with equal weights. The ISM Non-Manufacturing Index® is a composite index based on four indicators with equal weights.

Key Takeaways

  • We believe that the rebound in U.S. services industries — now supported by the economy’s reopening and by earlier fiscal stimulus — will provide an added tailwind to the labor market recovery.
  • Resilience of U.S. services industries along with a recovery of these frontline industries in Europe has added depth and breadth to the economic recovery in both regions.