April ISM manufacturing index: weakest since July 2017 - ING


Analysts at ING noted that the US ISM manufacturing index fell a little more than expected in April, coming in at 57.3 versus the 58.5 consensus and down from the 59.3 reading from March. 

Key Quotes:

"This was the weakest reading since July 2017."

"We are still at levels that historically were consistent with GDP growth of 5%."

"US manufacturing feels as though it is in great shape."

"Looking at the details, new orders fell only fractionally to 61.2, suggesting output will remain very robust in the months ahead - remember 50 is the break-even level. Production fell to 57.2 from 61.0 and employment dropped to 54.2 from 57.3, but these sub-indices are still growing, just at a slightly slower rate. New export orders were also robust at 57.7, suggesting the global economy remains in pretty good shape despite worries over some of the recent European numbers.

It is also important to look at the dispersion of the results. According to the ISM, 94% of manufacturing industries are seeing overall growth, with 89% seeing rising orders while 83% are experiencing rising production.

These are the highest readings for all three components for at least six months so while we have slightly slower growth overall in US manufacturing according to the ISM headlines, it appears to be more broad-based.

This means the Fed can have the confidence to continue with its gradual policy tightening, especially with inflation pressures building in the economy, as highlighted by the prices paid component rising to its highest level since April 2011."
 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD clings to daily gains near 1.0300 after US PMI data

EUR/USD clings to daily gains near 1.0300 after US PMI data

EUR/USD trades in positive territory at around 1.0300 on Friday. The pair breathes a sigh of relief as the US Dollar rally stalls, even as markets stay cautious amid geopolitical risks and Trump's tariff plans. US ISM PMI improved to 49.3 in December, beating expectations.

EUR/USD News
GBP/USD holds around 1.2400 as the mood improves

GBP/USD holds around 1.2400 as the mood improves

GBP/USD preserves its recovery momentum and trades around 1.2400 in the American session on Friday. A broad pullback in the US Dollar allows the pair to find some respite after losing over 1% on Thursday. A better mood limits US Dollar gains. 

GBP/USD News
Gold retreats below $2,650 in quiet end to the week

Gold retreats below $2,650 in quiet end to the week

Gold shed some ground on Friday after rising more than 1% on Thursday. The benchmark 10-year US Treasury bond yield trimmed pre-opening losses and stands at around 4.57%, undermining demand for the bright metal. Market players await next week's first-tier data. 

Gold News
Stellar bulls aim for double-digit rally ahead

Stellar bulls aim for double-digit rally ahead

Stellar extends its gains, trading above $0.45 on Friday after rallying more than 32% this week. On-chain data indicates further rally as XLM’s Open Interest and Total Value Locked rise. Additionally, the technical outlook suggests a rally continuation projection of further 40% gains.

Read more
Week ahead – US NFP to test the markets, Eurozone CPI data also in focus

Week ahead – US NFP to test the markets, Eurozone CPI data also in focus

King Dollar flexes its muscles ahead of Friday’s NFP. Eurozone flash CPI numbers awaited as euro bleeds. Canada’s jobs data to impact bets of a January BoC cut. Australia’s CPI and Japan’s wages also on tap.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures