On Thursday, the 3rd of October 2019, ISM (Institute of Supply Management) data released by GMT. 20.00, added further strains over a US economy which had been slowing sharply since latest escalation of Sino-US trade war, while the latest ISM data had revealed that the US service sector activity slew to a three-year low figure last month in context of growing concerns regarding tariffs, pointing towards a rapid acceleration of trade-war impacts on broader US economy.
In point of fact, latest service sector data comes forth a day after US manufacturing activity was plunged to a nearly decade-low figure last month, a survey of the Institute of Supply Management (ISM) revealed earlier this week.
Meanwhile, adding that the downward spiral of US economy started to spill over the broader US economy, a chief economist at MUFG in New York, Chris Rupkey said following release of Thursday’s (October 3rd) data, “This downturn is starting to spread and that means the tea leaf readers at the Fed are going to be teeing up a third rate cut this year when they next meet again at the end of this month.
” Besides, according to Thursday’s (October 3rd) ISM data, US non-manufacturing or service sector activity, that accounts for roughly 80.2 per cent of US economic activity, fell to a reading of 52.6 last month from a prior 56.4 in August, remarking its lowest level since August 2016.
On top of that, followed by the reveal of Thursday’s (October 3rd) ISM report on service sector or non-manufacturing activity, Wall St. was trading higher during preparation of the report (GMT. 22.00) over expectation of a rate-cut as early as this month.