US: Focus on ISM services index - Rabobank

Analysts at Rabobank suggest that in the US, the ISM services index is scheduled for release and they would expect the services sector to experience less of a drag from supply and production constraints at supplier firms earlier in the value chain (i.e. the time it takes for input materials to arrive).

Key Quotes

“Instead, the main question is whether the services sector also indicates that it is getting increasingly difficult to find qualified personnel. If this trend of hiring difficulties spreads through the services sector as well, that could indicate the labour market is getting generally tighter, rather than shortages in specific sectors or job categories. If today’s services ISM also contains a weaker reading for the employment component this could therefore not only indicate a somewhat below-average non-farm payrolls number tomorrow, but might also point to broadening wage pressure in the periods ahead.”