US ISM Services PMI eases to 53.6 in April
Economic activity in the US services sector lost some momentum in April, with the ISM Services PMI easing to 53.6 from 54 in the previous month, coming in below analysts expectations. Further poll results found that the Prices Paid Index, a crucial barometer of inflation, held steady at 70.7, while the Employment Index rose to 48 from 45.2, indicating a modest improvement in labour market conditions in the services sector. Finally, the New Orders Index weakened to 53.5 from 60.6. Market reaction The Greenback navigates an inconclusive range following the release, with the US Dollar Index (DXY) alternating gains with losses in the 98.50-98.40 band. GDP FAQs A countrys Gross Domestic Product (GDP) measures the rate of growth of its economy over a given period of time, usually a quarter. The most reliable figures are those that compare GDP to the previous quarter e.g Q2 of 2023 vs Q1 of 2023, or to the same period in the previous year, e.g Q2 of 2023 vs Q2 of 2022. Annualized quarterly GDP figures extrapolate the growth rate of the quarter as if it were constant for the rest of the year. These can be misleading, however, if temporary shocks impact growth in one quarter but are unlikely