US Services PMI unexpectedly increased to 56.5 in November from 54.4 in October, easily beating market forecasts of 53.1.
Business activity increased faster (64.7 vs 55.7) and employment rebounded (51.5 vs 49.1), prompted by a new fiscal period and the holiday season. Also, price pressures continued to ease (70 vs 70.7), inventories shrank less (47.9 vs 47.2) and supplier deliveries continued to slow (53.8 vs 56.2), with increased capacity and shorter lead times accounting for an improvement in supply chain and logistics performance. Meanwhile, a slowdown was seen in new orders (56 vs 56.5) and backlogs of orders (51.8 vs 52.2).
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The ISM Services PMI unexpectedly surged to 56.5 last month, while S&P Global's Services PMI confirmed its flash print, dropping from 49.3 in September to 46.2 in November. Source: Bloomberg via ZeroHedge
ISM services rose in November, however six components recorded declines. Source: Institute for Supply Management
Despite better-than expected ISM data markets still seeing an over 75% chance that the FED will hike rates only by 50 bp this month.
EURUSD broke below the 1.0540 support after release of today’s ISM data. Source:xStation5
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