US December ISM services 50.6 vs 52.6 expected
<ul><li><a href="https://www.forexlive.com/news/us-november-ism-services-527-vs-520-expected-20231205/" target="_blank" rel="follow">Prior </a>was 52.6</li></ul><p>Details:</p><ul><li>Employment index 43.3 versus 50.7 prior</li><li>New orders 52.8 versus 55.5 prior</li><li>Prices paid index 57.4 versus 58.3 prior </li><li>New export orders 50.4 versus 53.6 prior</li><li>Imports 49.3 versus 53.7 prior</li><li>Backlog of orders 49.4 versus 49.1 prior</li><li>Inventories 49.6 versus 55.4 prior</li><li>Supplier deliveries 49.5 versus 49.6 prior</li><li>Inventory sentiment 49.6 versus 62.2 prior</li></ul><p>This is some dovish stuff. Remember, the ISM services report is a great forward-looking data point while non-farm payrolls is a laggard.</p><p>The prices paid and employment numbers are particularly dovish.</p><p>Comments in the report</p><ul><li>“Pricing has become more favorable, in increments. However, beef
prices are still high. Petroleum continues to fluctuate. Services has
come down slightly, but hourly rates are still higher than pre-pandemic
(levels).” [Accommodation & Food Services]</li><li>“Congestion at the Panama Canal is expected to continue for the next
several months. The effect of this is rerouting marine cargoes at the
expense of cost and schedule.” [Construction]</li><li>“Business conditions are generally good, except for a short supply of major electrical components.” [Educational Services]</li><li>“Revenues remain strong but labor is still constrained, and
suppliers are floating price increases beginning January 1, which will
likely further reduce already low operating margins. Supply chains
appear to be operating closer to pre-pandemic norms and remain mostly
stable. Our primary goal for calendar year 2024 is expense reduction
across the board, including for supplies and services as well as through
eliminating non-value-added pursuits.” [Health Care & Social
Assistance]</li><li>“If interest rates go down, investment borrowing will increase, as will orders for services.” [Information]</li><li>“Production and sales are up, and prices are down.” [Mining]</li><li>“Hiring of direct employees, consultants and contract workers
remains flat across most industries as the holiday season is in full
swing and economic concerns persist. Companies are taking a wait-and-see
approach to increasing labor costs as they continue to try to do more
work with less people.” [Professional, Scientific & Technical
Services]</li><li>“Final push for the holidays. The supply chain and sales are strong — pricing stable.” [Retail Trade]</li><li>“We have seen a typical slow seasonal change in business. This is
not unexpected and remains at a higher level than in the previous two
years.” [Transportation & Warehousing]</li><li>“There is more stability in the supply chain for the first time
since early 2020. Overall level of business activity is still relatively
high.” [Utilities]</li><li>“Business is still robust in our area, despite the normal holiday
lull. We should see business resume after the first of the year if good
weather prevails. Mortgage rates are continuing to fall, which is aiding
in affordability. I think the first quarter will yield good demand.”
[Wholesale Trade]</li></ul>
This article was written by Adam Button at www.forexlive.com.
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