US: ISM Manufacturing PMI falls to 51.2 in July, misses expectation of 52

• ISM Manufacturing PMI drops to 51.2 in July from 51.7 in June.
• US Dollar Index retreats from highs on disappointing data.  

The monthly report published by the Institue for Supply Management (ISM) today showed that the Manufacturing Purchasing Manager Index (PMI) in July fell to 51.2 from 51.7 in June and came in worse than the market expectation of 52.

With the initial market reaction, the US Dollar Index came under modest bearish pressure and was last seen at 98.76, where it was still up 0.2% on a daily basis.

“Comments from the panel reflect continued expanding business strength, but at soft levels; June was the third straight month with slowing PMI  expansion,”    said Timothy R. Fiore, Chair of the Institute for Supply Management  (ISM) Manufacturing Business Survey Committee.

“Demand expansion ended, with the New Orders Index recording zero expansion, the Customers’ Inventories Index remaining at a too-low level, and the Backlog of Orders Index contracting for the second straight month. New export orders remain weak.”