- US ISM manufacturing down to 49.1 pts in August, below expectations
- PMI revised up from 49.9 to 50.3 points
- US indices turn lower
US ISM manufacturing was lower in all key categories. Source: Bloomberg
US ISM report was much anticipated as PMI reports showed signs of very delicate rebound in activity in Europe and most of Asia. However, in case of US the ISM slid to 49.1 points – well below the consensus of 51.2 points and the lowest print since Feb’16. It’s pointing to a contraction with key categories of employment and new orders turning to contraction as well. It is sure to intensify recession concerns, especially is a similar message is repeated by ISM non-manufacturing (report on Thursday).
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Open real account TRY DEMO Download mobile app Download mobile appJust before the ISM print we got the final market PMI and with a small upward revision from 49.9 to 50.3 points a contraction scenario has been avoided. However, investors pay more attention to the ISM as it has much longer track record.
US markets are down after the report. US30 was struggling below the key 26500 resistance zone and now it’s turning clearly lower and the EURUSD has recovered from today’s red as 50bp cut speculation will intensify in the US.
