- Business activity in the US manufacturing sector continued to contract in September.
- The Dollar Index is holding on to daily gains near 101.00.
Business activity in the US manufacturing sector continued to contract in September, with the ISM Manufacturing PMI standing at 47.2. This reading matched August’s reading, but was below the market expectation of 47.5.
The PMI survey Employment Index fell to 43.9 from 46 in the same period and the Prices Paid Index fell sharply to 48.3 from 54. Finally, the New Orders Index improved to 46.1 from 44.6.
Commenting on the survey findings, “Demand remains weak as companies showed an unwillingness to invest in capital and inventory due to federal monetary policy — which the US Federal Reserve addressed at the time of this report — and election uncertainty,” said Timothy R. Fiore, chairman of the Institute for Supply Management’s Manufacturing Business Survey Committee.
“Production performance stabilized in September. Suppliers continue to have capacity, with delivery times improving and shortages reappearing,” Fiore added.
Market reaction
The Dollar Index remains in the upper half of its daily range around 101.00 following this report.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
