Economic calendar

Forecast54.8Previous54.9

What it is

This is a survey of purchasing managers in the US services sector, produced by the Institute for Supply Management (ISM). A reading above 50 suggests the services sector is expanding, while below 50 suggests it is contracting.

Why it matters

Services make up most of the US economy, so this report helps show the economy's direction and price pressures. It is usually seen as a high to medium importance release.

Usual market reaction

Prices tend to react to the actual figure compared with the forecast. A higher-than-forecast reading often supports the US dollar, since it points to a firmer economy and may make Fed rate cuts less likely soon, while a lower reading usually weighs on the dollar. Gold often moves in the opposite direction to the dollar in the short term, and stock indices can react differently depending on how the data changes interest rate expectations.