US: ISM Manufacturing PMI declines to 50.2 in October vs. 50 expected
- US ISM Manufacturing PMI came in slightly above 50 in October.
- US Dollar Index recovered above 111.00 ith the initial reaction to the PMI data.
The business activity continued to expand in the US manufacturing sector in October albeit at a softer pace than in September with the ISM Manufacturing PMI falling to 50.2 from 50.9. This reading came in slightly better than the market expectation of 50.
Further details of the publication revealed that the Employment Index improved to 50 from 48.7, the Prices Paid Index dropped to 46.6 from 51.7 and the New Orders Index edged higher to 49.2 from 47.1.
Commenting on the survey’s findings, “panelists’ companies continue to carefully manage hiring, month-over-month supplier delivery performance was the best since March 2009, and the Prices Index indicated decreasing prices for the first time since May 2020,” said Timothy R. Fiore, Chair of the Institute for Supply Management Manufacturing Business Survey Committee.
“Like in September, mentions of large-scale layoffs were absent from panelists’ comments, indicating companies are confident of near-term demand,” Fiore further elaborated. “As a result, managing medium-term head counts and supply chain inventories remain primary goals.”
Market reaction
With the initial reaction, the US Dollar Index managed to erase a small portion of its daily losses and was last seen losing 0.35% on the day at 111.18.