US service sector growth slowest in five months

US services sector growth hit a five-month low in December, according to the Institute of Supply and Management

US service sector growth Source: Bloomberg

US ISM data showed on Monday, its non-manufacturing activity index fell to the lowest reading since July.

The index fell to 57.6 in December, from 60.7 in November missing expectations.

Analysts forecast a December reading of 59.0, slightly higher than recorded. Analysts say that the drop in the industry was somewhat expected, after seeing declines in business surveys.

Dollar falls upon weak PMI

Stocks on Wall Street were trading higher while US Treasury prices were lower and the dollar fell upon the data.

The fall was also pressured by growing concerns over the Federal Reserve and their monetary policy, which is expected to either pause or halt its interest rate hikes.

The ISM also noted that despite on-going monetary policy tightening from the Fed the sector is still solid and the economy is in good shape.

The ISM said that trade tensions between the US and China remained a major concern for business.

The economy grew at a 3.4% pace in the third quarter, while growth estimates for the fourth quarter coming in at around 2.6%.

Services industries employment fell to 56.3 in December, the lowest since July.

The ISM non-manufacturing index shows business conditions in the US non-manufacturing sector, which constitutes the largest sector of the US economy.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.


IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Please see important Research Disclaimer.