ISM Services PMI Rises to 53.8, Beating Analysts’ Expectations

The new orders index rose from 52.2 in April to 54.1 in May, while the employment index improved from 45.9 to 47.1.

The Institute for Supply Management commented: “The increase in the composite index in May is the result of significantly higher business activity, faster growth in new orders, slower deliveries from suppliers and despite the continued contraction in employment. »

According to the report, the majority of respondents believe that current inflation and interest rates are an obstacle to improving business conditions. However, this strong report shows that the services sector continues to grow despite current challenges.

Today, traders also had the opportunity to take a look at the final reading of the S&P Global Services PMI report for May. The report shows that S&P’s global services PMI rose from 51.3 in April to 54.8 in May, in line with analyst consensus.

The US dollar index rose to session highs as traders reacted to the better-than-expected ISM Services PMI report. Currently, the US Dollar Index is trying to settle above the 104.40 level. Treasury yields rose as bond traders bet on the Fed’s hawkish tone being bullish on the U.S. dollar.

Gold fell back below the $2,340 level as traders focused on rising Treasury yields and a strengthening dollar.