Analysts at Nomura note that the US ISM manufacturing index rose to 60.2 in June from 58.7 in May, above expectations (Nomura: 57.7, Consensus: 58.5).
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“Contemporaneous activity remained robust as the production index improved 0.8pp to 62.3, while the new orders index was mostly unchanged, down 0.2 point to 63.5. Both indices remain at high levels and suggest continued healthy momentum in activity.”
“Much of the upside surprise in the topline index in the June report, however, can be attributed to the suppliers delivery index. This measure jumped 6.2pp to 68.2.”
“Moreover, increased uncertainty from trade policies may have contributed to the sharp jump in the supply deliveries index. The imposition US tariffs on steel and aluminum imports following the expiration of exemptions for the EU, Mexico, and Canada likely caused significant supply chain disruptions.”
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