BoC rate cut/ISM services, mixed internals and see what was said on employment

Jun 05, 2024

∙ Paid

The Bank of Canada cut rates by 25 bps to 4.75% as expected and hinted at more to come if inflation continues to moderate. The ECB will follow tomorrow.

The May ISM services index rose to 53.8 from 49.4 and that was better than the estimate of 51. The internals were quite mixed though. New orders rose 1.9 pts m/o/m to 54.1 while backlogs slipped a touch to 50.8. Inventories were down by 1.6 pts to 52.1. Employment remained below 50 for a 4^th straight month at 47.1, pointing to the slowdown in the labor market.

Here were a few employment comments:

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