⚠️The US services sector is struggling

The recent services sector data looks stagflation

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The ISM Services PMI index FELL to 50.1, the second-lowest since June 2024.

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New orders fell to 50.3 points, also the second-lowest since June 2024.

At the same time, the prices paid index surged to 69.9, the highest since November 2022.

All while the ISM Services PMI Employment index fell to 46.4 points, one of the lowest readings since the 2020 Crisis.

Employment has now contracted in 4 out of the last 5 months.

The services sector is now facing surging prices and a weakening labor market suggesting stagflation might be coming. However, as the labor market weakens, demand is likely to decline over time, which should help ease price pressures. This will be an important development to monitor

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