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ISM Manufacturing PMI slips to 52.9 – below expectations

A slightly lower than expected read from the US manufacturing sector: 52.9 points in the ISM manufacturing PMI. Also construction spending disappointed with -1.1%.

The employment component also fell short with 51.4 points, after 54.1 seen beforehand. Prices paid also weigh on the number, with an extremely low 35 points. New orders ticked down from 52.9 to 52.5 points.

The dollar does not seem too excited by the read. This is still the smaller sector in the US economy and the  headline number is somewhat skewed down by prices.

The US manufacturing purchasing managers’ index (PMI) by ISM was expected to remain around the same level seen in January: 54.3 points. This figure,  and especially its employment component, serve as  a hint towards the Non-Farm Payrolls on Friday.

The US dollar traded in a mixed manner, sliding against the euro but gaining against the pound and some other currencies.

The parallel Markit manufacturing PMI came out at 55.1 points in the final read for February, better than 54.3 originally reported and a four month high.

At the same time, construction spending was reported and carried expectations for rising +0.4%.

Earlier, the Fed’s favorite inflation measured, core PCE price index, remained unchanged y/y at 1.3%. Other figures were somewhat disappointing.

We will get more  NFP hints on Wednesday, with the ADP NFP and the ISM Non-Manufacturing PMI – the report for the larger services sector.

More:  Get Ready For The Next Leg Lower In EUR/USD Coming Weeks

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.