US data continues beating expectations. The services sector enjoys robust growth according to ISM’s survey. The ISM Non-Manufacturing PMI jumps to 59.8, far better than 55.5 expected and 55.3 seen in August. This is the best figure since 2005. The employment component is only marginally higher: 56.8 against 56.2 beforehand. However, new orders jump to 63 and prices paid to 66.3. Scores above 60 represent “steaming hot” conditions.
The US dollar moves higher across the board.
Earlier, Markit’s parallel measure advanced from 55.1 to 55.3 in the final read. ISM carries more weight.
The positive data joins a slightly better than expected gain in jobs according to ADP. The ISM Manufacturing PMI also beat expectations.
All these numbers will certainly raise expectations for Friday´s jobs report, and these expectations start from a low place. The damage inflicted by the hurricanes resulted in disruption to actual jobs and also to measure them.