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US ISM Non-manufacturing: Activity remains solid in the services sector – Natixis

The US ISM nonmanufacturing remained at 57.2 in December, above expectations as noted by the analysts at Natixis.

Key Quotes

“Business activity and deliveries were little changed while the improvement in new orders was offset by the deterioration in employment. Once combined, ISM manufacturing and nonmanufacturing levels are consistent with US growth above the potential.”

“ISM non-manufacturing remained flat at 57.2 in December, above expectations (consensus: 56.8 / Natixis: 56.0). Business activity and deliveries were little changed. New orders rose to the highest level since August 2015, indicating that the activity is likely to remain strong in the near future. The decline in the employment component is consistent with our forecast of a moderate slowdown in NFP (we forecast 150K).”

“In short: ISM came in higher than expected, suggesting that the trend in the services sector is robust. Taken together with the ISM manufacturing survey released earlier this week, the current level of the composite ISM is consistent with a solid growth in the last quarter of 2016.”

Author

Sandeep Kanihama

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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