US manufacturing order books and inflation pressures are softening
The June US ISM manufacturing index has dropped to 53.0 from 56.1 (consensus 54.5) with new orders heading into contraction territory at 49.2 versus 55.1 previously – remember 50 is the break-even level with anything above in expansion and anything below signaling contraction. Weaker orders look concerning For now, production is holding up with the component index rising to 54.9 from 54.2, but with new orders contracting and the backlog of orders moderating (53.2 from 58.7) the direction of travel isn’t looking good. Employment was also very soft at 47.3 ...
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