Another better-than-expected headline figure… this time it was the U.S. ISM Services PMI, which climbed 0.9 pts to 54.5. The gauge has now held in the expansion zone (above 50) for almost two years. Business activity climbed for a second straight month to 57.7, pointing to stronger demand and higher output. Meantime, new orders jumped to 57.3, suggesting future activity remains healthy. Still, beneath the strong headline, there were a few flashpoints. The Employment Index slipped to 47.9, marking the third straight month of contraction. Businesses appear increasingly reluctant to add workers despite stronger demand. ... (full story)