21.08 - USA PMI Data (August)
- PMI, Manufacturing: 53,2 (Expected: 53,9; Previous: 53,9)
- PMI, Services: 56,8 (Expected: 54; Previous: 54,6)
- PMI, Composite: 56 (Previously: 54,5)
The biggest surprise is the services PMI. Not only is it rising instead of falling (as expected), but it's also reaching a level suggesting a rather strong expansion. Because services account for a much larger share of the US economy than manufacturing, their importance in assessing economic conditions is likely much greater.
However, the manufacturing sector index proved to be a significant disappointment. Instead of further acceleration, it fell noticeably below the expected ~53.9%.
The likely conclusion from these data is that energy costs and logistical disruptions continue to weigh on the manufacturing sector, but consumers (especially affluent ones) are supporting the services sector much more than previously anticipated. Taken together, this result points the Fed more toward a rate hike/hold than a potential cut.
EURUSD (M1)
Source: xStation5
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