TD Securities forecasts a May rebound in US services activity driven by new orders and supply chain disruptions tied to Iran tensions.
The US ISM Services Index is expected to climb to 54.7 in May from 53.6 in April, above the consensus estimate of 53.8. The increase is attributed to stronger new orders and supplier delivery delays, the latter linked to ongoing supply chain issues from the Iran conflict.
April’s JOLTS job openings showed mixed signals, with a notable rise in professional and business services. Analysts suggest the April increase may have been overstated, anticipating a pullback in May. Labor market ratios remain a key focus amid stabilization trends.
Market attention will also center on the prices paid component, reflecting inflation pressures from elevated energy costs. Fed speakers and the Beige Book release may take a backseat to Middle East developments, which could overshadow US data.