Will the ISM Service PMI Disappoint Like the Manufacturing PMI?

ISM Manufacturing PMI Disappoints: Will Services Follow Suit?

The Institute for Supply Management (ISM) recently released its Manufacturing Purchasing Managers' Index (PMI) for August, and the results were disappointing. The PMI fell to 50.9%, down from 52.8% in July. This is the lowest reading since June 2020, and it indicates that the manufacturing sector is contracting. The ISM Manufacturing PMI is a measure of the health of the manufacturing sector. It is based on a survey of purchasing managers at manufacturing companies. The PMI is a leading indicator of economic activity, and it is closely watched by economists and investors. The decline in the ISM Manufacturing PMI is a sign that the manufacturing sector is struggling. This is likely due to a number of factors, including the ongoing COVID-19 pandemic, the war in Ukraine, and rising inflation. The ISM Services PMI is a measure of the health of the services sector. It is based on a survey of purchasing managers at service companies. The Services PMI is also a leading indicator of economic activity. The ISM Services PMI is scheduled to be released on September 6th. Economists are expecting the Services PMI to decline in August, but not as much as the Manufacturing PMI. This is because the services sector has been more resilient than the manufacturing sector during the COVID-19 pandemic. However, there are some concerns that the Services PMI could also disappoint. The services sector is facing a number of challenges, including rising wages, supply chain disruptions, and the impact of the Omicron variant of COVID-19. If the ISM Services PMI does disappoint, it would be a sign that the economy is slowing down. This would be a major concern for policymakers, as it could lead to a recession.

What to Watch For in the ISM Services PMI

There are a number of things to watch for in the ISM Services PMI. These include: * **New orders:** This is a measure of the number of new orders that service companies are receiving. A decline in new orders would indicate that the services sector is slowing down. * **Production:** This is a measure of the level of production at service companies. A decline in production would indicate that the services sector is contracting. * **Employment:** This is a measure of the number of people employed in the services sector. A decline in employment would indicate that the services sector is shedding jobs. * **Prices:** This is a measure of the prices that service companies are charging for their services. An increase in prices would indicate that the services sector is facing inflationary pressures. The ISM Services PMI is a key indicator of the health of the economy. A disappointing reading in the Services PMI would be a sign that the economy is slowing down. This would be a major concern for policymakers, as it could lead to a recession.