Main Story of Today: US Services Purchasing Managers’ Index Report
The main story of today will be focused on the purchasing managers’ index, particularly in the New York session, which will assess most of the insights from the business’s perspective in the services sector. That includes pricing, employment level, or consumer spending conditions; all in all, that is what gives us some of the health checks on the economy.
Projection: Higher than the prior figure
→ Better than the benchmark of 50 → more expansion, better economic growth. And vice versa.
Recap from the S&P manufacturing PMI and the ISM manufacturing PMI
Both reports printed lower than the benchmark 50, stating that demand stagnated and input prices (inflation) rose, while employment could fall into bad shape; all are in relation to the tariff uncertainty. Especially the pricing for the manufacturing significantly surged above 60, emphasizing the concerns over the inflation problem in the near future. Even if some tariffs have already settled down, will this fade out the current rising inflation?
And another question posed: will the services pricing rise as high just like the manufacturing sectors? So watch out for the pricing, as too high a price now would lead to lower consumption later, and degrowth is very likely.
***Although this report will only be expressed as the business sentiment, this also acts as an indicator to confirm the deal with the inflation problem and labor market conditions.
