Analysts at Wells Fargo, lowered Friday’s non-farm payrolls expectations from 175K to 165K after today ISM non-manufacturing report. They also noted that tariff worries are spreading to the service sector.
Key Quotes:
“ISM non-manufacturing fell to the slowest pace since July 2017. Tariffs are now weighing on service-sector sentiment too and contributing to higher input costs for businesses.”
“The ISM non-manufacturing index fell to 55.1 and while that is still in expansion territory, it marks the slowest pace of growth in the service sector since July 2017.”
“The employment component slipped 3.1 points to 55.0, signaling the slowest pace of hiring since June 2018, and the number of industries hiring fell to just 50%. We have revised down our call for Friday’s jobs report to +165K from +175K previously.”
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