SPX

ISM Manufacturing PMI Drops To 48.7, Missing Analyst Expectations

FXEmpire.com -

On June 3, 2024, the Institute for Supply Management released ISM Manufacturing PMI report for May.

The report indicated that ISM Manufacturing PMI declined from 49.2 in April to 48.7 in May, compared to analyst consensus of 49.6. Numbers below 50 show contraction.

ISM Manufacturing PMI report showed that the economic activity contracted for the 18th time in the last 19 months, highlighting the challenging situation in the manufacturing sector.

New Orders Index declined from 49.1 in April to 45.4 in May, while Production Index decreased from 51.3 to 50.2.

The Institute for Supply Management commented: “Demand remains elusive as companies demonstrate an unwillingness to invest due to current monetary policy and other conditions […] Suppliers continue to have capacity, with lead times improving and shortages not as severe.”

Today, traders also had a chance to take a look at the final reading of S&P Global Manufacturing PMI report. The report showed that S&P Global Manufacturing PMI improved from 50 in April to 51.3 in May, compared to analyst consensus of 50.9.

U.S. Dollar Index tested session lows as traders reacted to the disappointing ISM Manufacturing PMI report. Currently, U.S. Dollar Index is trying to settle below the 104.25 level. Treasury yields are moving lower, which is bearish for the American currency.

Gold moved above the $2340 level as traders focused on falling Treasury yields and U.S. dollar’s pullback.

SP500 continues its attempts to settle above the 5300 level. Fed policy outlook remains an important catalyst for equity indices, so the weaker-than-expected ISM Manufacturing PMI data may provide some support to stocks.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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