ISM Services PMI Missed Analyst Expectations

Key Insights

• ISM Services PMI decreased from 53.9 in June to 52.7 in July. 
• S&P Global Services PMI declined from 54.4 in June to 52.3 in July. 
• Factory Orders increased by 2.3% month-over-month in June.

On August 3, the Institute for Supply Management released ISM Services PMI report for July. The report indicated that ISM Services PMI declined from 53.9 in June to 52.7 in July, compared to analyst consensus of 53.

The Institute for Supply Management commented: “There has been a slight pullback in the rate of growth for the services sector. This is due mostly to the decrease in the rate of growth for business activity, new orders and employment, as well as ongoing faster delivery times.”

Today, traders also had a chance to take a look at the final reading of the S&P Global Services PMI report. The report showed that S&P Global Services PMI decreased from 54.4 in June to 52.3 in July, compared to analyst consensus of 52.4.

Factory Orders increased by 2.3% month-over-month in June, while analysts expected that they would grow by by 2.2%.

Treasury yields have started to pull back from session highs after the release of the weaker-than-expected reports. However, it remains to be seen whether reports will have a material impact on the mood of bond traders.

U.S. Dollar Index settled near the 102.70 level. It looks that U.S. dollar is trying to stabilize after the recent rally.

Gold continued its attempts to settle below the $1935 level. Gold traders will likely stay focused on the dynamics of Treasury yields in the upcoming trading sessions.

SP500 settled below the 4500 level as traders reacted to the economic reports. The weaker-than-expected ISM Services PMI report may serve as an additional bearish catalyst for major indices.

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