The ISM purchasing managers’ index for the US manufacturing sector for February badly disappointed by falling to 51.3 points. It was expected to remain in the same area like last month: a minor slide from 54.2 to 54.1 points. A score above 50 represents growth. The positive side of the report is the employment component: it rose from 52.6 to 54.2 points. This is the focus for the NFP.
This disappointment joins previous shortcoming seen last week. EUR/USD traded steadily at 1.2818. USD/JPY fell to lower ground in the wake of the new week, and the pair traded around 93.60 before the publication and it is now extending its fall.
New orders fell sharply from 57.8 to 51.4 points. The prices component dropped from 61.5 to 54.5 points. It’s important to note that the US manufacturing sector is small.
Construction spending rose by 1.2%: it was expected to rise by 1.1% after falling 2.1% last month.
Last month, the ISM Manufacturing PMI exceeded expectations in the headline figure and enjoyed a strong employment component. This serves as a hint for the Non-Farm Payrolls on Friday.
Earlier, the final manufacturing PMI from Markit was revised to the downside: from 54.9 to 54.6 points, below expectations of 55 points.
Trading volume is extremely low due to the Easter holiday, which is observed in many financial centers. Full scale trading is expected tomorrow.
Further reading: Cyprus: Potential capital outflows and euro-zone outflow explained