SM Manufacturing PMI improves above expectations

The ISM Manufacturing PMI increased to 47.1 from 46.3 in April as the economic activity in the US manufacturing sector continued to decrease, albeit at a slower rate than it did in March. This result was little higher than the 46.6 market forecast.

According to further information in the report, the Employment Index increased from 46.9 to 50.2 and the New Order Index increased from 44.3 to 45.7. Lastly, the input inflation component, the Price Paid Index, increased from 49.2 to 53.2.

The US manufacturing sector shrank once more, but the Manufacturing PMI increased from the month before, indicating a slower decline. The reading for the April composite index shows that businesses are still controlling outputs to better fit demand for the first half of 2023 and get ready for growth in the late summer/early autumn timeframe.

With the initial response to the data, the US dollar gained strength. The US Dollar Index was trading at 101.90 at the time of publication, up 0.25% on the day.