- US ISM Manufacturing PMI recovered less than expected in July.
- Manufacturing Employment Index at 44.4 versus 48 expected.
- US Dollar Index stays retreats from three-week highs after data.
The economic activity in the US manufacturing sector improved in July but remained below 50, with the ISM Manufacturing PMI advancing to 46.4 from 46 in July. This reading came in worse than the market expectation of 46.8.
Further details of the publication revealed that the New Orders Index improved to 47.3 from 45.6, while the Employment Index slid from 48.1 to 44.4. Finally, the inflation component, Prices Paid Index, rose to 42.6 from 41.8.
“Regarding the overall economy, this figure indicates an eighth month of contraction after a 30-month period of expansion”, said Timothy R. Fiore, Chair of the Institute for Supply Management. “The U.S. manufacturing sector shrank again, but the uptick in the PMI indicates a marginally slower rate of contraction. The July composite index reading reflects companies continuing to manage outputs down as order softness continues.”
Market reaction:
At the same, the JOLTS Job Opening report was also released. Following the data, the US Dollar Index retreated from three-week highs toward 102.15.
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