ISM Services PMI Meets Analyst Expectations

Key Insights

• ISM Services PMI decreased from 54.5 in August to 53.6 in September. 
• S&P Global Services PMI declined from 50.5 to 50.1.
• Factory Orders increased by 1.2% month-over-month in August. 

On October 4, the Institute for Supply Management released ISM Services PMI report for September. The report indicated that ISM Services PMI declined from 54.5 in August to 53.6 in September, in line with the analyst consensus.

New Orders index declined from 57.5 in August to 51.8 in September, while Business Activity index increased from 57.3 to 58.8.

The Institute for Supply Management commented: “There has been a slight pullback in the rate of growth for the services sector […] The majority of respondents remain positive about business conditions; moreover, some respondents indicated concern about potential headwinds.”

Today, traders also had a chance to take a look at the final reading of S&P Global Services PMI report for September. The report showed that S&P Global Services PMI decreased from 50.5 in August to 50.1 in September, compared to analyst consensus of 50.2.

Factory Orders grew by 1.2% month-over-month, while analysts expected that they would increase by 0.2%.

U.S. Dollar Index moved back towards the 107 level after the release of the ISM Services PMI report. Treasury yields pull back after testing new highs, but traders remain focused on the rising probability of a rate hike from the Fed.

Gold remains under pressure as the pullback continues. Currently, gold is trying to settle below the $1820 level. The pullback in Treasury yields did not provide any support to gold markets.

SP500 is mostly flat as traders react to the economic reports. Fed policy outlook will remain the key driver for stocks in the upcoming trading sessions.

For a look at all of today’s economic events, check out our economic calendar.