Interesting to note the US ISM Services index declined (50.3), below expectations (52.4) and below prior period (51.9).

Services, thus far, have been quite strong, firmly in expansionary territory, with manufacturing weak. The weakness in manufacturing is easy to understand; higher interest rates, and a stronger US dollar, services, hithertofore, is relatively insulated from either.

Perhaps a pause from the Fed might well be the right idea after all, to keep the soft landing intact.

New orders (52.9, vs 56.1 previously) was perhaps the most notable subcomponent to moderate, although the decrease in score on prices paid (3rd column, 3rd row) would generally be viewed as a favourable development, on net, as inflationary pressures subside.

Overall, we’d rate it as mostly consistent with Goldilocks, no need to do anything.

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