US Services PMI expected to show a stable sector as focus turns to Employment Index
The post US Services PMI expected to show a stable sector as focus turns to Employment Index appeared on BitcoinEthereumNews.com.
The Institute for Supply Management (ISM) is scheduled to release the October Services Purchasing Managers’ Index (PMI) on Wednesday. The report, which is a well-trusted measure of business performance and is widely seen as a leading indicator of economic activity, is expected to reflect a mild expansion in the services sector. Because of the postponement and cancellation of key macroeconomic data releases due to the ongoing US government shutdown, the ISM Services PMI report could significantly influence the valuation of the US Dollar (USD) in the near term. What to expect from the ISM Services PMI report? Markets expect the publication to show a modest expansion in the services sector’s business activity, with the headline ISM Services PMI edging higher to 50.7 in October from 50 in September. Previewing the report, TD Securities analysts said, “We look for the ISM surveys to move higher in October, following mostly disappointing outcomes in the summer.”. “ISM services should partially walk back its 2pt September drop. Respondent views and the ISM’s employment components will garner attention,” they added. In September, the Employment Index came in at 47.2 and remained below 50 for the fourth consecutive month, reflecting a steady decline in the service sector’s payrolls. Following the October policy meeting, Federal Reserve (Fed) Chairman Jerome Powell acknowledged that the job creation was low but added that they did not see the weakness in the job market accelerating. Regarding the interest rate outlook, Powell said that another rate cut in December was “far from assured.” Meanwhile, the inflation component of the PMI survey, the Prices Paid Index, remained above 69 for three consecutive months, reflecting strong input inflation for the sector. According to the CME FedWatch Tool, markets are currently pricing in around a 67% probability of a 25-basis-point (bps) Fed rate cut in…
Filed under: News - @ November 5, 2025 11:28 am