US: ISM non-manufacturing to decline slightly to 54.5 - Nomura

The research team at Nomura notes that the US headline ISM non-manufacturing index decreased slightly to 55.2 in March from 57.6 in February and survey-based measures of business activity, while elevated, suggest no acceleration between March and April.

Key Quotes

“The Philly Fed headline index decreased slightly in April compared to March, while the Dallas Fed service sector activity index declined in April for the third consecutive month. These readings imply some moderation in business sentiment. Service-providing payrolls decelerated in March, while retail trade employment posted a consecutive month of employment losses.”

“Moreover, given the recent turmoil in the brick and mortar retail industry, it will be interesting to see how this index fares. In April, we expect the ISM nonmanufacturing index to remain elevated but decline slightly to 54.5 (Consensus: 55.8).”