No surprises here: ISM Manufacturing PMI stands at 56 points in June. The ISM Non-Manufacturing (services) PMI for June was expected to stand at 56.2 points, similar to last month’s 56.3 points. This report usually comes before the Non-Farm Payrolls and works as a hint. This time it came after the excellent NFP: the US gained no less than 288K jobs in June and the unemployment rate dropped to 6.1%, without a drop in the participation rate.
EUR/USD was on low ground above 1.36 after also suffering from Draghi’s heavy hand, GBP/USD was at 1.7140 and USD/JPY around 102.20. The dollar is very marginally lower.
The employment sub-component rises from 52.4 to 54.4, echoing the strong NFP. New orders are also strong: 61.2 points, the highest since January 2011.
Markit’s final Services PMI for June stands at 61 points, revised down from 61.2 originally reported but still reflecting very strong growth. There seems to be a good correlation between Markit’s employment component in the services PMI and the NFP.
