US ISM: A decent report – Danske

By FXStreet According to analysts from Danske Bank, today’s ISM report in the US it was decent despite the decline and they expect the index to move higher over the next three to six months.

Key Quotes:

“ISM manufacturing declined one index point to 50.8 in April from 51.8 in March. The fall in ISM manufacturing in April came after a sharp rebound in the last couple of months and looking at the details we still think it was a decent release showing that manufacturing sector has stabilised after some difficult months by the end of 2015 and at the beginning of the year.”

“Still we think ISM manufacturing is likely to stay subdued slightly above 50 in the coming months, but looking 3M-6M ahead we expect it to move higher. Weaker USD, stabilisation in China, lower credit spreads, an end to the inventory adjustments and the higher oil price are all supportive for the US manufacturing sector.”

“While ISM manufacturing is important for sentiment, we think that the Fed is looking for signs in the ISM non-manufacturing index that we should see a rebound in Q2 GDP growth after the significant slowdown in Q1. We expect nonfarm payrolls rose 210,000 in April (consensus: …read more

Source:: FX Street