The ISM Manufacturing PMI scores 53.2 points in February 2014 above expectations. The ISM Manufacturing purchasing managers’ index for February was expected to rise to 52.3 from a low 51.3 points in January. This is the first important hint towards the Non-Farm Payrolls due on Friday. The prices paid component jumped to 60 points. The employment component remained unchanged at 52.3 points.
Markets have been relatively steady given the events in the Ukraine. EUR/USD traded around 1.3770, USD/JPY was lower at around 101.40 and GBP/USD floated above 1.6720. The US dollar is slightly higher after the publication: EUR/USD is below 1.3760 and GBP/USD is getting closer to 1.67. USD/JPY remains more stable with this leading pack.
Here is a quote from the report:
As in January, several comments from the panel mention adverse weather conditions as a factor impacting their businesses in February. Other comments reflect optimism in terms of demand and growth in the near term.
So, the weather is still an issue, but optimism is prevalent.
At the same time, Construction Spending was expect to remain unchanged in January after rising 0.1% in December.
Earlier, the final Markit manufacturing PMI for February came out at 57.1 points, higher than 56.7 points originally reported. This is the highest level since 2010 and certainly encouraging. However, in the US, the ISM carries more weight than Markit. In January, Markit printed 53.7 points while ISM printed 51.3 points. This is a gap of 2.4 points.
Further reading: Ukraine problems should not get in way of big week for data
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