- The business activity in the US manufacturing sector continued to contract in September.
- The US Dollar Index clings to daily gains near 101.00.
The business activity in the US manufacturing sector continued to contract in September, with the ISM Manufacturing PMI coming in at 47.2. This reading matched August's print but came in below the market expectation of 47.5.
The Employment Index of the PMI survey slumped to 43.9 from 46 in the same period and the Prices Paid Index fell sharply to 48.3 from 54. Finally, the New Orders Index improved to 46.1 from 44.6.
Commenting on the survey's findings, "demand remains subdued, as companies showed an unwillingness to invest in capital and inventory due to federal monetary policy — which the U.S. Federal Reserve addressed by the time of this report — and election uncertainty," said Timothy R. Fiore, Chair of the Institute for Supply Management Manufacturing Business Survey Committee.
"Production execution stabilized in September. Suppliers continue to have capacity, with lead times improving and shortages reappearing," Fiore added.
Market reaction
The US Dollar Index stays in the upper half of its daily range at around 101.00 following this report.
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