Today's Report (11/03/2021)

The ISM Services PMI jumped to a record high of 66.7 in October of 2021 from 61.9 in September, beating market forecasts of 62. It is the 4th time this year the services sector grows at a record pace, amid strong demand "which shows no signs of slowing although ongoing challenges including supply chain disruptions and shortages of labor and materials are constraining capacity and impacting overall business conditions", Anthony Nieves, Chair of the ISM said. Increases were seen in the subindexes for production (69.8 vs 62.3 in September), new orders (69.7 vs 63.5), supplier deliveries (75.7 vs 68.8), prices (82.9 vs 77.5) while a slowdown was seen for employment (51.6 vs 53) and inventories contracted faster (42.2 vs 46.1).

US ISM Non-Manufacturing PMI

What is it?

The first read on the economy’s services sector.

What are the fundamental effects?

It provides significant information about factors that affect total output growth and inflation. A reading above 50 shows a growing non-manufacturing sector and below 50 shows contraction in the non-manufacturing sector.

How does it affect the markets?

The overall reaction is generally muted.