Talking Points
- The US ISM non-manufacturing PMI came in lower than expected.
- However, the release still suggested robust economic growth in the US.
- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.
The Institute for Supply Management’s purchasing managers’ index for the non-manufacturing sectors of the US economy in March came in at 55.2, below both the predicted 57.0 and the previous month’s 57.6. That followed the equivalent manufacturing report released earlier this week, which also suggested a slowdown in March.
Nonetheless, taken together, the numbers still imply only a modest setback in the first quarter and an economy still growing robustly. That, in turn, implies that the rate-setting Federal Open Market Committee is still on course to increase rates several times this year, to the benefit of the US Dollar. Moreover, the US labor market remains unusually strong, judging by the latest ADP National Employment Report released ahead of Friday’s official non-farm payrolls data.
--- Written by Martin Essex, Analyst and Editor
To contact Martin, email him at martin.essex@ig.com
Follow Martin on Twitter @MartinSEssex
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