ISM Services PMI expected to show robust US economy in September
On Monday, we’ll get the latest read on the US services sector when the Institute for Supply Management (ISM) publishes its September gauge. Consensus points to a marginal uptick to 55.7 from August’s 55.4.
The Institute for Supply Management (ISM) will release its September gauge of the US services sector on Monday at 14:00 GMT. Analysts expect a slight increase to 55.7, up from August's 55.4, indicating continued resilience in the economy. The latest report showed hiring momentum pick up, with the ISM Employment Index rising to 47.8, and new orders increasing to 60.9, suggesting demand may be gaining traction.
However, inflation remains a concern, with the US inflation rate exceeding the Federal Reserve's 2% target. Fed officials are cautious about further rate hikes, keeping inflation on the table as a potential source of increased speculation on additional rate hikes later in the year. A report that meets expectations should not significantly impact the US Dollar (USD), confirming an economy that is resilient but still grappling with inflation.
A weaker-than-expected reading could weaken confidence and lead investors to reduce USD holdings, fearing a slowdown in growth.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
