The US services sector grew by a weaker than expected rate in August, according to Markit: 58.5 points. This still reflects very solid growth. PMIs are forward looking indices, yet this “soft data†is not always in direct correlation with GDP.
The US dollar is marginally weaker. The US releases the new home sales figure very soon, which has more influence on markets.
The Markit Services PMI was expected to slide from 60.8 to 59.5 points for the month of August. This is the preliminary publication that is followed by a final one early in September.
Update:Â US new home sales 412K, slight disappointment
Last week, Markit’s manufacturing PMI surprised by jumping up. It was somewhat overshadowed by other excellent US figures.
The composite PMI Stands at 58.8 points for the month of August according to the preliminary numbers.
Markit’s US purchasing managers’ index is relatively new, but it is certainly gaining traction in comparison to the heavyweight ISM PMIs which are published in the first days of the month.
The US dollar has been on a roll in recent days, and this includes a nice weekend gap, for example, against the euro.
