U.S. ISM Services PMI Misses Consensus in November
Investing.com
Published Dec 05, 2017 10:01AM ET
U.S. ISM non-manufacturing PMI drops to 57.4 in November vs. 59.1 forecast
Investing.com - Service sector activity in the U.S. fell more than expected in November, dampening optimism over the American economy, industry data showed on Tuesday.
In a report, the Institute of Supply Management (ISM) said its non-manufacturing purchasing manager's index (PMI) decreased to 57.4 in November from the prior month’s reading of 60.1.
Analysts had expected the index to drop to only 59.0 last month.
On the index, a reading above 50.0 indicates the non-manufacturing sector economy is generally expanding, below 50.0 indicates the sector is contracting.
The Non-Manufacturing Business Activity Index decreased to 61.4 last month, 0.8 points below October’s reading of 62.2 and also below the consensus forecast of 61.5.
The New Orders Index registered 58.7 in November, 4.1 points lower than the reading of 62.8 in the previous month.
The Employment Index fell 2.2 points to 55.3 last month from October’s reading of 57.5.
The Prices Index decreased 2.0 points to 60.7 in November from the prior month’s reading of 62.7.
The ISM indicated that, despite the slowdown, it was the 95th consecutive month of expansion in economic activity in the non-manufacturing sector.
“The rate of growth has lessened in the non-manufacturing sector after two very strong months of growth,” ISM chair Anthony Nieves explained in the report.
“Comments from the survey respondents indicate that the economy and sector will continue to grow for the remainder of the year,” he added.
Following the report, EUR/USD traded at 1.1831 compared to 1.1833 ahead of the release, GBP/USD was at 1.3429 from 1.3428 earlier, while USD/JPY was at 112.75 from 112.73 prior to the publication.
The U.S. dollar index, which tracks the greenback against a basket of six major rivals, was unchanged at 93.30.
Meanwhile, U.S. stock markets were trading mixed after the open. The Dow 30 slipped 17 points, or 0.07%, the S&P 500 inched up 2 points, or 0.07%, while the Nasdaq Composite gained 37 points, or 0.54%.
Elsewhere, in the commodities market, gold futures traded at $1,267.90 a troy ounce, compared to $1,270.60 ahead of the data, while crude oil traded at $57.47 a barrel from $57.42 earlier.
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