- US manufacturing ISM up to 55.3 pts.
- Weird retail sales report leaves mixed feelings
- US indices extend gains from European session
The US ISM manufacturing index rose to 55.3 pts. from 54.2 pts. in February with key components: new orders and employment clearly higher than last month. Although this stands in contrast with manufacturing PMI (revised actually down today to 52.4 pts., was 53 in February), the ISM has much longer history and markets trust this report more.
Earlier today we had an important retail sales report from the US and the data was very mixed. On the surface it was very weak with headline sales down 0.2% and core (ex-auto) down 0.4% m/m but with major upward revisions for January (from +0.2% to +0.7% and from +0.9% to +1.4% m/m respectively). However, the US consumer demand still looks weak – strong January data was just a partial “compensation” after a dreadful December report.
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Despite major upward revisions to the January data the annual sales growth in the US remains lackluster. Source: Macrobond, XTB Research
Market reaction is positive – US indices surge and are close to 2019 highs and the EURUSD is not far from multi-month lows.
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