Analysts at Nomura are forecasting a reading of 57.7 for the US June ISM manufacturing index, 1pp below the level in May.
Key Quotes
“Regional manufacturing surveys have been somewhat mixed thus far for June. The Empire State, Dallas Fed and Richmond Fed manufacturing surveys all improved during the month. However, the Philly Fed survey showed a material decline.”
“Overall, the recent escalation in trade tensions will likely be enough to dampen manufacturer sentiment while keeping it above April’s reading of 57.3. However, the US economic outlook in 2018 remains bright and we expect many manufacturers to remain optimistic.”
“Nonetheless, worsening trade tensions could disproportionately affect manufacturers, especially given the recent imposition of tariffs on steel and aluminum imports from major suppliers such as Canada, Mexico and the EU.”
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