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ISM and PMI Services At Odds Once Again, This Time With A Flipped Sign

US DATA
  • After last year’s general overshooting of ISM vs PMI service counterparts, the opposite has opened up in recent months, with the -4.6pt gap (ISM services 50.3 vs PMI services 54.9) the lowest since May’21.
  • It comes as the ISM Service series shows a steadier trend decline in activity as it slowly continues to follow a much sharper contraction in implied manufacturing activity, vs the PMI equivalent which has bounced strongly off 2H22 lows of circa 45 readings.

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