ISM Non-Manufacturing PMI scores 54.2 points. A slide from last month’s strong 55.1 points to 54.5 was expected.
EUR/USD traded around 1.2780 before the release. UDF/JPU is at 80.25.
A score of above 50 points represents growth, while a score under this level represents contraction. The result, within expectations, doesn’t move the markets too much nor the elections in the US.
The components in the report are mixed: on one hand, the employment component rose from 51.1 to 54.9 points. If this figure would have been released before the Non-Farm Payrolls, it would have been a clue for the good report. In the upcoming month, the ISM Non-Manufacturing PMI will be released prior to the NFP. Note that the services sector is America’s largest.
Another positive figure for the longer run is a drop in inventories – they will eventually have to be replenished.
On the other hand, the news orders figures slipped to 54.8 from 57.7. In addition, the report shows that new export orders are now contracting: 47.5 points after 50.5 last month. This is a worrying sign for the whole world. These join the weaker headline number.
All in all, the report is within expectations and shows ongoing slow growth.
Further reading: How to Trade the US Presidential Elections with EUR/USD
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