🇺🇸Cable FX Macro Weekly Note: ISM Svcs PMI

**As seen in Risk In The Week report 09/30/22, cablefxm.co.uk/reports

August manufacturing PMI came in at 52.8, this was unchanged from the prior figure and an upside surprise to market expectations. One of the highlights in the report was the employment subcomponent, the index came back from contraction territory to print at 54.2. In the prices front, the gauge dropped the most on the month, falling 7.5pp to 52.5. 2/11 ISM indexes for the manufacturing sector are below 50.0 in August, down from 3/11 in July. The August ISM Services PMI printed higher at 56.9; prev. 56.7. Employment bounced back from sub-50 levels, prices paid fell to 71.5 from 72.3, this was the lowest reading since January 2021. The largest change to the upside was seen in new export orders rising 2.4 points to 61.9, backlog orders dropped 4.4 points to 53.9. Looking at the previous couple of prints, we note decent divergence between the U.S. manufacturing and services sectors, the largest since November. Analysts at CIBC say the September figure could have cooled a little as softer demand weighs on the new orders sub-component. They say supplier deliveries sub-index falls as supply chain disruptions ease, and think this can translate into a lower headline number.