US November ISM services 52.1 vs 55.5 expected

• Prior was 56.0 (was best since Sept 2023)
• Employment 51.5 vs 53.0 prior
• New orders 53.7 vs 57.4 prior
• Prices paid 58.2 vs 58.1 prior
• Supplier deliveries 49.5 vs 56.4 prior
• Inventories 45.9 vs 57.2 prior
• Backlog of orders 47.1 vs 47.7 prior
• New export orders 49.6 vs 51.7 prior
• Imports 53.8 vs 50.2 prior
• Inventory sentiment 54.6 vs 53.0 prior

Comments in the report

• “Federal Reserve interest rate cuts have not had the desired effect
  on mortgage rates yet. With election results mostly determined,
  expansion of residential construction is anticipated, but the unknown
  effect of tariffs clouds the future.” [Construction]
• “All operations are normal at the moment. Nothing local or national
  that is having any major effect on our operations.” [Educational
  Services]
• “Higher level of activity is driving the need for additional resources.” [Finance & Insurance]
• “We have concern after the presidential election that tariffs will
  affect prices for electronics and components in 2025.” [Information]
• “Domestic lead times still seem very long. We are having to go to
  China for many electrical equipment requirements. Even after tariffs,
  the price is half, and so are the lead times.” [Management of Companies
  & Support Services]
• “Election results and the potential tariff changes would impact
  inventory and lead to higher prices in the hospital supply chain. What
  we saw during COVID-19 with startup U.S. production is a warning sign
  again.” [Professional, Scientific & Technical Services]
• “Construction materials are shorted or hard to get due to increased
  construction projects in the area and (in the) U.S. Sometimes projects
  are delayed due to this.” [Public Administration]
• “We finished a solid quarter and are planning on a similar holiday
  period. Not breaking any records, but positive.” [Retail Trade]
• “Still waiting to see how presidential cabinet picks shake out, if
  they are confirmed and how they will affect our operations going
  forward. Holding capital projects now until the cabinet is complete and
  we know how federal funds will be dispersed going forward.”
  [Transportation & Warehousing]
• “Even though we are reducing our spending and our employment levels,
  we have a positive outlook for 2025 performance with expected
  reinvestment of funds.” [Utilities]

This is a cool report and should bump up Fed cut odds while weighing on the US dollar. Current Fed cut odds are up to 75% from 70%. They’ll swing further on the Beige Book at 2 pm ET

This article was written by Adam Button at www.forexlive.com.