U.S. ISM Manufacturing (June)
- ISM Index: 53.3 (Expected: 54; Previous: 54)
- ISM – Manufacturing Employment: 49.7 (Previous: 48.6)
- ISM – Prices Index: 73 (Expected: 79; Previous: 82.1)
- ISM – New Orders in Manufacturing: 56 (Previous: 56.8)
- Manufacturing PMI: 53.9 (Expected: 55.7; Previous: 55.1)
- Construction spending: 0.1% (Expected: 0.1%; Previous: 0.4%)
Weak U.S. manufacturing data is reinforcing the deteriorating sentiment toward the American economy and the U.S. dollar. After the ADP release and the PMI reading came in below expectations, the ISM manufacturing data was also disappointing. What stands out most is the sharp drop in the prices index, which, against the backdrop of rising inflation, may signal weakening demand in the manufacturing sector.
The only positive is manufacturing employment, which increased, although it still remains below the neutral level (50 points).
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After declines triggered by the Fed Chair’s speech, the data release prompted a shallow correction. Source: xStation5.
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