Early expectations stood on a slide from 56.1 to 55.2, still well within growth territory. 50 points mark the difference between growth and contraction. The employment component, which is used to gauge the NFP, rose from 55.3 to 57.5, the highest since February 2006. On the other hand, the important new orders component retreated from the highs of 58.3 to 54.4 points.
USD/JPY traded at high ground (in part thanks to Shirakawa) around 93 before the release. EUR/USD was looking for a direction above 1.35. The pair fell earlier below the critical 1.3486 line, but managed to recover. The pair continues recovering after the publication.
Non-manufacturing (services), is the vast majority of the US economy.
When published in advance, this services PMI figures provides a good hint for the Non-Farm Payrolls report. NFP came out with expectations: a gain of 157K jobs.
IBD/TIPP Economic Optimism rose to 47.3 points. It was expected to slide from 46.5 to 46.1 points.
The general picture of the US economy remains of a slow and steady / frustrating growth. Here are more details of the ISM Non-Manufacturing PMI:
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