U.S. non-manufacturing sector shows unexpected strength, ISM PMI rises to 51.6

Published 05/05/2025, 15:02
U.S. non-manufacturing sector shows unexpected strength, ISM PMI rises to 51.6

The Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers’ Index (PMI) reported an unexpected rise in the non-manufacturing sector, indicating an expansion in the economy. The actual index value was reported at 51.6, surpassing forecasted and previous values.

The actual PMI figure of 51.6 outperformed the forecasted figure of 50.2. This indicates a more robust expansion in the non-manufacturing sector than analysts had predicted. The index, a composite measure of business activity, new orders, employment, and supplier deliveries, reflects the overall health of the non-manufacturing sector. A reading above 50 suggests expansion, while a figure below 50 indicates contraction.

In comparison to the previous month, the current ISM Non-Manufacturing PMI also shows an improvement. The previous month’s index was reported at 50.8, meaning that the non-manufacturing sector has seen a stronger expansion this month. This improvement is a positive sign for the U.S. economy, as the non-manufacturing sector represents a significant portion of the country’s GDP.

The data for the ISM Non-Manufacturing PMI is compiled from monthly responses to questions asked of more than 370 purchasing and supply executives in over 62 different industries. These industries span nine divisions from the Standard Industrial Classification (SIC) categories, providing a comprehensive view of the non-manufacturing sector’s performance.

The unexpected rise in the ISM Non-Manufacturing PMI is a positive sign for the USD. Higher than expected readings are generally taken as bullish for the USD, as they suggest a stronger economy. Conversely, lower than expected readings are seen as bearish for the USD, indicating a weaker economy. This month’s higher than expected PMI figure suggests that the non-manufacturing sector, and by extension the U.S. economy, is in a stronger position than previously thought.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.