The U.S. ISM manufacturing PMI survey for September got here in weaker than anticipated, because the index held regular at 47.2 to mirror the identical tempo of business contraction as an alternative of bettering to the 47.6 consensus.
This marked the sixth consecutive month that the index stayed beneath the 50.0 mark, as majority of parts mirrored a slowdown for the interval. Specifically, the costs sub-index fell 5.7 factors to 48.3 from its August studying of 54, its first contractionary studying to date this yr.
The employment part got here in at 43.9, down 2.1 factors from the earlier 46 studying, whereas new orders ticked increased from 44.6 to 46.1. The manufacturing index additionally improved from 44.8 to 49.8 however remained in contraction whereas inventories additionally declined.
Hyperlink to U.S. ISM Manufacturing Survey (September 2024)
“Demand continues to be weak, output declined, and inputs stayed accommodative,” famous Chair of the Institute for Provide Administration Timothy Fiore.
“Demand stays subdued, as corporations confirmed an unwillingness to spend money on capital and stock as a result of federal financial coverage — which the U.S. Federal Reserve addressed by the point of this report — and election uncertainty.”
Market Reactions
Overlay of USD vs. Main Currencies Chart by TradingView
The Dollar, which noticed elevated volatility roughly an hour forward of the ISM manufacturing PMI launch, had a quick bearish response to the weaker than anticipated outcomes.
USD/JPY and USD/CHF had already been cruising decrease forward of the report, so these pairs chalked up the steepest declines afterwards. Greenback losses in opposition to the Kiwi and Aussie had been rapidly pared, because the U.S. foreign money virtually immediately recovered in opposition to majority of its friends.
The JOLTS job openings report was additionally launched on the identical time, and the numbers turned out stronger than anticipated because it got here in a 8.04 million in July versus the anticipated 7.64 million studying and the earlier 7.71 million determine.