ISM Manufacturing PMI print drops below expectations

The US ISM Manufacturing PMI edged slightly lower in July. US Dollar Index stays under bearish pressure below 105.50. The business activity in the US manufacturing sector expanded at a slightly softer pace in July than in June with the ISM Manufacturing PMI declining to 52.8 from 53 in June. This was the lowest reading since June 2020 but it was better than the market expectation of 52.

Key Quotes

“The New Orders Index registered 48%, 1.2 percentage points lower than the 49.2% recorded in June.”

“The Production Index reading of 53.5% is a 1.4-percentage point decrease compared to June’s figure of 54.9%.”

“The Prices Index registered 60%, down 18.5 percentage points compared to the June figure of 78.5%; this is the index’s lowest reading since August 2020 (59.5%).”

“The Employment Index contracted for a third straight month at 49.9%, 2.6 percentage points higher than the 47.3% recorded in June.”

As for the market’s reaction, the US Dollar Index stays on the back foot after this report and was last seen losing 0.38% on the day at 105.42.