No surprises in the headline services gauge: 56.5 points shows the ISM Non-Manufacturing PMI. This is bang on expectations and a minor slide from the previous read.
The employment component actually ticks up from 56.4 to 56.6 points. New orders rise from 56.7 to 57.8 and prices paid return to growth territory with 52.4 from 49.7 beforehand. Also the exports component is up to the highest since early 2013 despite the stronger dollar.
The US dollar is somewhat stronger after the recent falls, with EUR/USD ticking down to 1.1014. GBP/USD is at 1.4960, USD/JPY battles 119, USD/CAD is trading around 1.2466, AUD/USD is at 0.7637 and NZD/USD peeks above 0.76.
The US ISM Non-Manufacturing PMI was expected to stand at 56.6 points in March, slightly below the 56.9 level seen in February. This reflects good growth in the services sector – the largest in the country.
The US dollar was on the slide towards the event, as it continued suffering the weak NFP report published on Friday.
This services sector PMI and especially its employment component usually serve as a hint towards the Non-Farm Payrolls. This time, the publication’s timing makes it somewhat less significant but still telling for the wider economic picture.
Earlier, Markit’s final services PMI printed an upwards revision: from 58.6 points in the preliminary reading to 59.2 now. The Institute for Supply Management (ISM) still carries more weight than Markit in the US.
More: Economic weakness reaches jobs, but what will you buy instead of USD?
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