The ISM Manufacturing PMI for the US fell to 49.0 in November from 50.2 in the previous month, below analysts’ expectations of 49.8 and pointing to the first contraction in factory activity since May of 2020. New orders (47.2 vs 49.2), supplier deliveries (47.2 vs 46.8) and backlog of orders (40 vs 45.3) contracted faster and a decline was also seen for employment (48.4 vs 50). At the same time, both production (51.5 vs 52.3) and inventories (50.9 vs 52.5) rose less. On a more positive note, price pressures eased again (43 vs 46.6).
The US manufacturing sector again moved into contraction territory. Source: Bloomberg via ZeroHedge
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appWeak data for the dollar and theoretically should support further recovery on Wall Street due to reduced chances for higher rate hikes. In fact, we already know that the increases will be smaller, as the Fed has finally led to an economic slowdown. But the question is, has the economy not cooled down too much? If so, that's not very good news for indexes.
EURUSD saw relatively small reaction to today’s data releases. The most popular currency pair continues to trade above 1.0500 level. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
