Key Insights
ISM Services PMI decreased from 52.7 in November to 50.6 in December.
New Orders Index declined from 55.5 to 52.8.
Employment Index fell from 50.7 to 43.3.
On January 5, 2024, the Institute for Supply Management released ISM Services PMI report. The report indicated that ISM Services PMI declined from 52.7 in November to 50.6 in December, compared to analyst consensus of 52.6. Numbers above 50 show expansion.
New Orders Index decreased from 55.5 in November to 52.8 in December, while Employment Index declined from 50.7 to 43.3.
The Institute for Supply Management commented: “The services sector had a pullback in the rate of growth in December, attributed to the decrease in the rate of growth for new orders and contraction in employment […] There are concerns related to economic uncertainty, geopolitical events and labor constraints.”
Traders also had a chance to take a look at the Factory Orders report. The report showed that Factory Orders increased by 2.6% month-over-month in November, compared to analyst consensus of +2.1%.
U.S. Dollar Index tested session lows as traders reacted to the weaker-than-expected ISM Services PMI report. Currently, U.S. Dollar Index is trying to settle below the 102.00 level.
Gold made an attempt to settle above the $2060 level as traders focused on U.S. dollar’s pullback and falling Treasury yields.
SP500 tested session highs above the 4720 level as traders bet on a more dovish Fed after the release of ISM Services PMI data.
For a look at all of today’s economic events, check out our economic calendar.
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