Near term weakness in US manufacturing – ANZ

By FXStreet FXStreet (Guatemala) – Analysts at ANZ noted that the September ISM came in below expectations at 50.2 vs 51.1 in August.

Key Quotes:

“That was the third consecutive monthly fall and brings the index to levels that are statistically insignificant from 50.”

“Manufacturing is stagnant and the sub-components of the index point to further potential weakness near term. New orders dropped to 50.1 (51.7), production fell to 51.8 (53.6) and the export index was unchanged at 46.5. Employment eased to 50.5 vs 51.2.”

“Those readings point to a potential drop sub-50 near term. Manufacturing is suffering from weak overseas demand and is soggy globally.”

“The ISM said that its members reported that uncertainty over the Fed and China were contributing to manufacturing weakness. On a brighter note, August construction spending rose 0.7% m/m, driven by a 1.3% increase in private residential construction, and preliminary car sales for September outstripped expectations.”
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Source:: FX Street