Fiper | ISM Services PMI

The Institutional Support Management (ISM) Non-Manufacturing Index determines the level of activity of purchasing managers in the services sector, and a reading above 50 indicates expansion. To get a reading of this indicator, purchasing managers determine the level of certain elements in the sector, including employment, production, new orders, resource allocation, and inventories.
The ISM manufacturing PMI rose to 47.7 in February 2023 from 47.4 in January, the lowest level since May 2020, but fell short of expectations of 48. The reading indicated a fourth consecutive month of lower factory activity as businesses continued to slow. To better match demand for the first half of 2023 and prepare for growth in the second half of the year. New orders (47 vs 42.5) and order backlogs (45.1 vs 43.4) contracted at a slower pace and the Customer Inventory Index remained at "very low" levels (46.9 vs 47.4), which is positive for future production. On the other hand, a larger decline was observed in production (47.3 vs. 48) while employment decreased (49.1 vs. 50.6) although companies continued to indicate that they will not drastically reduce the number of people, as sentiment is positive around the second half of the year. At the same time, price pressures increased (51.3 vs. 44.5), supporting the agreement between buyers and sellers to place orders in the near term.

Outlook for today's statement and how it will affect the currency

The expected level for today's statement is 54.5
In the event that the current statement is issued at a higher than expected level, it will positively affect the currency, and vice versa