US ISM May services PMI 53.8 vs 50.8 expected | Forexlive

The key components:

• New orders 54.1 vs 52.2 prior
• Employment 47.1 vs 45.9 prior
• Prices paid 58.1 vs 59.2 prior

The other details:

• Production 61.2 vs 50.9 prior
• Deliveries 52.7 vs 48.5 prior
• Inventories 52.1 vs 53.7 prior
• Order backlogs 50.8 vs 51.1 prior
• New export orders 61.8 vs 47.9 prior
• Imports 42.8 vs 53.6 prior

That’s a solid rebound after the April reading being the lowest since December 2022. The jump owes much to a strong rebound in production/business activity. Meanwhile, new orders also saw a bounce as employment conditions improved on the month as well.

The prices paid component, the one to watch on inflation, eased a touch as well but is still holding on the high side overall.

The dollar is slightly higher in the aftermath but there is a bit of a balance to be struck this week, following the softer labour market data over the last two days.