November 03, 2022 15:11 GMT
Implications of the U.S. Services PMI Divergence
US DATA
MNI (London)
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The ISM Services PMI and S&P Global services PMI have diverged notably since June 2022 - and understanding the reasons for this divergence is important to gauge the implications for US economic activity.
We highlight three key grounds for divergence:
- The ISM PMI is likely to be resilient because it has a wider range of industries, of which some have benefited from higher commodity prices
- The ISM may have a bias towards larger firms that are more insulated from cost pressures
- The S&P Global index is a business activity (output) index alone vs ISM’s weighted approach
See our full analysis below:
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