- Markit Manufacturing PMI slumps to worst level in nearly a decade.
- Services PMI rises to offset any negative impact on USD.
- Composite PMI improves slightly to 51.6 in July.
According to the IHS Markit's Flash US PMI report, business activity in the manufacturing sector stagnated in July with the Manufacturing PMI dropping to 50 in July from 50.6 in June.
However, the Services PMI in the same period improved to 52.2 from 51.5 in June to allow the Composite PMI to tick up to 51.6 in July, keeping the USD's losses limited despite the disappointing Manufacturing PMI reading. At the moment, the DXY is down 0.1% on the day at 97.60.
Commenting on the data, "The survey data indicated that the economy started the third quarter on a disappointingly soft footing," Chris Williamson, Chief Business Economist at the IHS Markit said. "The PMIs for manufacturing and services collectively point to annualized GDP growth of just 1.6%, up only very marginally from a lacklustre 1.5% indicated by the survey in the second quarter."
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