US: ISM Manufacturing PMI falls to 46 in June vs. 47.2 expected
- US ISM Manufacturing PMI continued to decline in June.
- US Dollar Index stays in the red below 103.00.
The economic activity in the US manufacturing sector continued to contract at an accelerating pace in June, with the ISM Manufacturing PMI dropping to 46 from 46.9 in May. This reading came in worse than the market expectation of 47.2.
Further details of the publication revealed that the New Orders Index improved to 45.6 from 42.6, while the Employment Index fell to 48.1, revealing a decline in the sector's payrolls. Finally, the inflation component, Prices Paid Index, dropped to 41.8 from 44.2.
Assessing the survey's findings, "demand remains weak, production is slowing due to lack of work, and suppliers have capacity," said Timothy R. Fiore, Chair of the Institute for Supply Management. "There are signs of more employment reduction actions in the near term. Seventy-one percent of manufacturing gross domestic product (GDP) contracted in June, down from 76 percent in May."
Market reaction
The US Dollar Index edged lower with the initial reaction and was last seen losing 0.1% on the day at 102.85.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
