Summary:
-
ISM manufacturing PMI: 51.2 vs 52.0 exp
-
Employment component also drops ahead of NFP
-
S&P500 at daily highs despite the data
Today’s seen the focus fall on manufacturing with PMI releases from around the globe released that have further served to support the notion of a slowdown in activity. The last, and arguably the most important, comes from the US with the ISM reading for July coming in at 51.2 down from 51.7 prior. The reading was below the expected 52.0. This now means that 3 of the past 4 releases for this data point have missed forecasts.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Both the USD manufacturing and the more widely viewed ISM reading have extended their declines of late and are in danger of slipping below the 50 mark in the coming months. Source: XTB Macrobond
The sub components of the report were also pretty soft, with employment dropping to 51.7 from 54.7 prior. Prices paid also declined to 45.1 from 47.9 and while new orders bucked the trend in rising to 50.8 from 50.0 the increase is minimal. The employment reading is of particular interest here given that tomorrow with see the release of the latest US jobs report.
The S&P500 has recovered after the rout seen yesterday evening following the Fed. The market has now moved back above the 61.8% fib with the 78.6% at 3003. Source: xStation
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
