Panson Macro: Rebound in ISM Service Survey Should Ease Recession Worries

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On August 5, Ian Shepherdson, chief economist of Panson Macro, believes that the Rebound of the ISM services survey in July should ease people’s fears of a recession in the United States. The headline index rebounded to just 0.2 points below the average for the first half of the year, when GDP rose at a decent pace. The business activity index and the new orders index also contributed to the economic recovery. At the same time, the price payment index is also in line with the Fed’s key inflation measure. “The benign inflation outlook means that the Fed can quickly turn its attention to rate cuts. Overall, the report is not weak enough to increase the pressure on an emergency rate cut this week,” he added.

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