- US services sector business survey released at 53.9, below 54.5 expectations.
- Employment sub-component improves to 55.5 in November.
- NFP leading-indicator table is looking more red than green.
- US dollar sell-off is prolonged across the board.
The US ISM Non-Manufacturing PMI for the month of November printed a 53.9 reading, half a point below the consensus expectation. The service sector business survey adds to the bunch of negative releases coming from the United States this week, after disappointments from the ISM Manufacturing PMI and the ADP Employment Report.
Despite being sustained by historically good employment figures, the US service sector is slowly surrendering to the deceleration already seen in the manufacturing one. The disappointment seen in November's survey makes it the seventh month this year where ISM Non-Manufacturing PMI figures have disappointed expectations and the eighth time it has shown a decrease from the previous release.
ISM Non-Manufacturing PMI historical data
The US dollar extended its losses after the release, with EUR/USD touching 1.1110 before retracing back just below 1.11 and GBP/USD making new multi-month highs at 1.3115 at press time.
Upbeat employment sub-component helps shaky NFP leading-indicator table
Despite the negative generic reading, there were some green lights in the report, as the employment sub-index came out improved in November, printing a 55.5 reading, growing 1.8% from the 53.7 seen in October.
All in all, these dismal releases are providing negative signals for Friday's US jobs report, an important one before next week's Federal Reserve monetary policy meeting. The NFP leading indicator table looks more reddish than greenish.
US jobs report pre-release checklist – Dec 6th, 2019
|Previous Non-Farm Payrolls||Neutral||Headline number at 128k beat very modest expectations, but decreased from the previous reading (180k).|
|Challenger Job Cuts||-||To be released on Thursday, December 5th at 12.30 GMT.|
|Initial Jobless Claims||-||To be released on Thursday, December 5th at 12.30 GMT.|
|Continuing Jobless Claims||-||To be released on Thursday, December 5th at 12.30 GMT.|
|ISM Non-Manufacturing PMI||Positive||Despite a disappointing generic reading, the employment sub-component in the ISM Non-Manufacturing PMI improved in November to 55.5, from 53.7 in October.|
|ISM Manufacturing PMI||Negative||Employment sub-component in the ISM Manufacturing PMI disappointed for the third month in a row, printing a modest 46.6, way into contraction territory.|
|University of Michigan Consumer Confidence Index||Positive||UMich consumer survey continued its recovery in November, ticking up to 96.8, the fourth consecutive increase.|
|Conference Board Consumer Confidence Index||Negative||CB consumer survey showed a small retracement from 126.1 to 125.5, also failing to match the expectations, which were forecasting a surge to the 127 mark.|
|ADP Employment Report||Negative||The leading indicator most correlated with the headline NFP number printed a dismal 67K reading, well below 140K expectations.|
|JOLTS Job Openings||Negative||Job openings fell below expectations in September, printing 7.024 million labor vacancies, the third consecutive month with a number below expectations.|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.