- ISM Services PMI for May came in below the market expectation.
- The USD stays under selling pressure in the American session on Wednesday.
The business activity in the US service sector contracted slightly in May, with the Institute for Supply Management’s (ISM) Services Purchasing Managers Index (PMI) dropping to 49.9 from 51.6 in April. This reading came in below the market expectation of 52.
Other details of the report showed that the Prices Paid Index, the inflation component, rose to 68.7 from 65.1, while the Employment Index improved to 50.7 from 49.
Assessing the survey’s findings, “May’s PMI level is not indicative of a severe contraction, but rather uncertainty that is being expressed broadly among ISM Services Business Survey panelists,” said Steve Miller, CPSM, CSCP, Chair of the ISM Services Business Survey Committee.
“Respondents continued to report difficulty in forecasting and planning due to longer-term tariff uncertainty and frequently cited efforts to delay or minimize ordering until impacts become clearer,” Miller added.
Market reaction
The US Dollar (USD) stays under bearish pressure after this report. At the time of press, the USD Index was down 0.35% on the day at 98.90.
