Optimistic data from US – ISM Non-Manufacturing rose in May, alongside Factory Orders

The Institute for Supply Management reported that ISM Non-Manufacturing Composite indicator rose to 53.7 in May from 53.1 in April, but, however, stood below the registered value in March, 54.4. Experts had projected the index to show a reading of 53.5. Data implied that services sector in the United States managed to retain expansion. New orders index rose to 56.0 in May from 54.5 during April, while business activity index reached a value of 56.5 in May from a reading of 55.0 a month ago. Employment index, on the other hand, fell to 50.1 in May, while the April value was 52.0.

Additionally, another report said that US Factory Orders increased during April, as aircraft demand contributed to that result. Signs appeared, however, that industry sector did not perform well during the spring season. Factory goods orders, including the whole variety from farming equipment to soda, rose by 1.0% (4.9 billion USD) to 474 billion USD in April on a monthly basis. Factory orders were revised in March and showed a 4.7% decline in value. Experts had predicted that this indicator would increase by 1.5%. The registered increase in April was a result of demand for goods, used in transportation. Boeing Co. received more orders during April, which contributed to the total increase of the indicator. Excluding transportation, new factory orders diminished by 0.1% in April, after dropping by 2.4% in March.

The euro was unchanged against the US dollar right after these indicators were announced, with EUR/USD trading in the range of 1.3072-1.3082.