The US ISM Non-Manufacturing PMI hit 52.6 points. A score of 52.1 was expected after last month’s 52.1 score. This is a moderate positive surprise, but comes from the most important sector.
It’s important to note that the employment component fell from 52.3 points to 49.3 this time. The fall under 50 points in employment is a worrying sign and in disconnect from the Non-Farm Payrolls report.
The good news comes from the new orders component, which rose from 53.3 to 54.3, signalling faster growth.
The services sector is around three quarters of the US economy. The manufacturing sector suffered from two consecutive months of contraction.
Earlier, Non-Farm Payrolls exceeded predictions with an impressive rise of 163K jobs.
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