Investing.com - Financial Markets Worldwide
Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

U.S. Service Industries Contract At A Slower Pace: ISM Ray Of Light

Published 12/31/2000, 07:00 PM
Updated 05/05/2009, 12:25 PM
ISM Non-Manufacturing Index (Apr) Actual 43.7, Expected 42.5, Previous 40.8   Release Explanation: Similar to the PMI numbers, ithis private survey interviews Purchase Managers on their sentiment on orders, hiring, inventories, and deliveries. Split into the Service Index (above), and then Service Prices which look at the rate of inflation when materials and services are purchased. This builds an economic picture of the strength of manufacturing activity ahead of official Government reports. These numbers usually are a pre-cursor to the PMI numbers later in the month. A currency can be very reactive to these surveys as over time they have been a reliable read on Government reports to come.   Trade Desk Thoughts: The service sector of the economy contracted for a sixth straight month in April, but at the slowest pace seen in six months, the Institute for Supply Management said today. The non-manufacturing index rose to 43.7 from the March reading of 40.8. Economists had expected the index would rise to 42.5.   The report makes up over 90% of the economy with Real Estate and Rental & Leasing reporting expansion for last month. Within the sub indexes, business activity/production and new orders contracted at a slower pace, while employment, which has now contracted for 11 straight months, contracted faster.   Prices and new orders decreased at a fast pace as did new export orders and imports. Businesses still said their inventories were too high. Producers noted that some inflation in commodities was being seen and that healthcare was seeing a slowdown in volume. Respondents from the Transportation & Warehousing sector said "we are definitely feeling the recession in terms of business activity on all fronts."   Forex Technical Reaction: Stocks declined after the report was released and the dollar made some headway against the higher-yielding euro, pound and aussie.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.