US: ISM Manufacturing PMI edges lower to 60.6 in May vs. 61 expected
- US ISM Manufacturing PMI fell slightly in June.
- US Dollar Index continues to move sideways below 92.50.
The economic activity in the US manufacturing sector continued to expand in June albeit at a softer pace than it did in May with the ISM's Manufacturing PMI declining to 60.6 from 61.2 in May. This reading came in slightly lower than than the market expectation of 61.
Further details of the publication revealed that the Employment Index dropped into the contraction territory below 50 for the first time since November. Additionally, the Prices Paid Index rose to a new series-high of 91.2 from 88 in May. Finally, the New Orders Index declined to 66 from 67.
Commenting on the data, "manufacturing performed well for the 13th straight month, with demand, consumption and inputs registering growth compared to May.," noted Timothy R. Fiore, Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee. "Panelists' companies and their supply chains continue to struggle to respond to strong demand due to the difficulty in hiring and retaining direct labor."
Market reaction
The US Dollar Index showed no immediate reaction to this report and was last seen flat on the day at 92.35.
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.
