ISM Services PMI 6/7/2022

The ISM Non-Manufacturing Index determines the activity level 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 some elements in this sector, including employment, production, new orders, resource allocation, and inventories.

The ISM Services PMI fell to 55.9 in May 2022 from 57.1 in April, below market expectations of 56.4 and indicating the slowest expansion in the services sector since February 2021. Production (54.5 vs. 59.1) and inventories (51 vs. 52.3), increased Backlogs (52 vs. 59.4) are lower than in April, but employment rebounded faster (50.2 vs. 49.5) and new orders accelerated (57.6 vs. 54.6). Meanwhile, prices fell from record levels but remained high (82.1 vs. 84.6). “COVID-19 continues to disrupt the services sector, as well as the war in Ukraine. Labor remains a huge problem, prices continue to rise” and businesses are struggling to replenish stocks, according to Anthony Neves, head of the ISM Services Business Survey Committee

The expected level for today's statement is 53.9

In the event that the current statement is issued, a higher level than expected will positively affect the currency and vice versa

The report will be released at 5 pm Mecca time