ISM Services PMI Fell To 51.4, Missing Analyst Expectations

On April 3, 2024, the Institute for Supply Management released ISM Services PMI report for March. The report indicated that ISM Services PMI declined from 52.6 in February to 51.4 in March, compared to analyst consensus of 52.7.

Numbers above 50 show expansion. ISM Services PMI has been in the expansion territory in 45 of the last 46 months.

The Institute for Supply Management commented: “The decrease in the rate of growth in March and the decline in the composite index is a result of slower new orders growth, faster supplier deliveries and a contraction in employment.”

Today, traders also had a chance to take a look at the final reading of the S&P Global Services PMI report for March. The report indicated that S&P Global Services PMI decreased from 52.3 in February to 51.7 in March, in line with the analyst consensus.

S&P Global Composite PMI declined from 52.5 to 52.2. This report has also met analyst estimates.

Treasury yields pulled back from session highs after the release of the ISM Services PMI report. From a big picture point of view, Treasury yields settled near multi-month highs.

U.S. Dollar Index tested session lows as traders reacted to the weaker-than-expected ISM Services PMI report. The American currency remains under pressure despite rising Treasury yields.

Gold settled near the $2275 level after the release of the report. Gold traders remain focused on rising geopolitical tensions, which boost demand for gold.

SP500 tested session highs near 5230 as traders bet that the weaker-than-expeced services data raises chances for a more dovish Fed.

For a look at all of today’s economic events, check out our economic calendar.