Breaking: ISM Manufacturing PMI jumps to 52.6 in June vs. 49.5 expected
|The economic activity in the US' manufacturing sector expanded in June with the ISM's Manufacturing Purchasing Managers' Index (PMI) improving to 52.6 from 43.1 in May. This reading came in better than the market expectation of 49.5.
Further details of the publication showed that the Price Paid Index rose to 51.3 from 40.8, the New Orders Index advanced to 42.1 from 31.8 and the Employment Index climbed to 42.1 from 32.1.
Commenting on the data, "June signifies manufacturing entering an expected expansion cycle after the disruption caused by the coronavirus (COVID-19) pandemic," said Timothy R. Fiore, Chair of the ISM's Manufacturing Business Survey Committee. "Comments from the panel were positive (1.3 positive comments for every one cautious comment), reversing the cautious trend which began in March."
Market reaction
This data seems to have triggered a fresh wave of risk-on flows. As of writing, the US Dollar Index was down 0.26% on a daily basis at 97.13 and the S&P 500 was up 0.55% at 3,117 points.
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