The latest ISM services report shows US business activity in robust shape with the headline index beating forecasts and last month’s reading by a margin.
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According to Anthony Nieves, Chair of the Institute for Supply Management (ISM),
“The increase in the composite index in May is a result of notably higher business activity, faster new orders growth, slower supplier deliveries and despite the continued contraction in employment. Survey respondents indicated that overall business is increasing, with growth rates continuing to vary by company and industry. Employment challenges remain, primarily attributed to difficulties in backfilling positions and controlling labor expenses. The majority of respondents indicate that inflation and the current interest rates are an impediment to improving business conditions.”
The US dollar picked up a small bid after the ISM data, stemming this week’s losses. The US dollar index has sold off after hitting at two-week high last Thursday, fuelled by slightly better-than-expected US inflation, last Friday’s weak Chicago PMI – 35.4 vs. 41 forecast – and this week’s worse-than-forecast JOLTs and ADP jobs reports.
Tuesday June 4th
Wednesday June 5th
