Bill Diviney, senior economist at ABN AMRO, points out that the US ISM Nonmanufacturing Index (NMI) fell to a three year low of 52.6 in September, down from 56.4 in August, and well below ABN AMRO’s (54.5) and consensus (55.0) estimates. Key Quotes “The fall was fairly broad-based among sub-indices, but particularly concerning was the drop in Employment (to 50.4 from 53.1) and New Orders (to 53.7 from 60.3) indices, which suggests weak confidence in the manufacturing sector – linked to the trade war – is spreading to the services sector.” “While the relationship between the NMI and services activity (observed for instance in private consumption growth) is not as strong as the relationship between the manufacturing PMI’s new orders index and business investment, directionally it does suggest a slowdown in services is on the horizon.” “This is consistent with our view that the weakness in manufacturing will ultimately drive a broader slowdown – via slower jobs growth, and in turn consumption. Markets have reacted accordingly, with OIS forwards moving closer to our expectation of two more Fed rate cuts this year; an October cut is now 88% priced (previously 80%), and an additional December now 72% priced (previously 60%).” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/JPY continues to trade below 107 ahead of US NFP data FX Street 3 years Bill Diviney, senior economist at ABN AMRO, points out that the US ISM Nonmanufacturing Index (NMI) fell to a three year low of 52.6 in September, down from 56.4 in August, and well below ABN AMRO's (54.5) and consensus (55.0) estimates. Key Quotes "The fall was fairly broad-based among sub-indices, but particularly concerning was the drop in Employment (to 50.4 from 53.1) and New Orders (to 53.7 from 60.3) indices, which suggests weak confidence in the manufacturing sector - linked to the trade war - is spreading to the services sector." "While the relationship between the NMI and services activity… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.