US July ISM services index 54.1 vs 54.5 expected
- Prior was 54.0
- Prices paid 70.3 vs 67.7 prior
- New orders 57.2 vs 55.1 prior
- Employment 47.4 vs 51.2 prior
- Business activity 59.1 vs 55.4 prior
The S&P Global final PMI for July was released shortly before this report and was at 54.6 vs 53.6 previously, that was an 8-month high. This report missed but there were some positive signs in business activity and new orders. The big drag is employment, which fell back below 50, and in a big way. That might reflect temporary jobs in the World Cup and USA 250 celebrations but it’s somewhat worrisome to have weakening employment at the same time as rising inflation. This raises the stakes somewhat for Friday’s non-farm payrolls report and adds downside risks. Today’s ADP employment number was also soft.
This article was written by Adam Button at investinglive.com.