US: ISM non-manufacturing index expected to decline to 55.0 in August – Danske Bank

Research Team at Danske Bank, suggests that today, we have a thin calendar in terms of global data releases but the focus in the US will be on the ISM non-manufacturing index for August.

Key Quotes 

“In recent months, the two different PMIs for the US services sector have sent mixed signals. The Markit PMI services index declined in August and continued at a relatively low level around 51, indicating only modest growth in the US services sector. The ISM non-manufacturing index has been significantly above the PMI services index in recent months, indicating much stronger growth in the US services sector.

With consumers still optimistic and hard data confirming the positive signals on private consumption, we expect the US services sector to grow at a solid pace throughout 2016. Hence, we think the level of the PMI service index is 'too low' and believe that the ISM non-manufacturing index sends a fairer signal. We estimate the ISM non-manufacturing index declined to 55.0 in August.”