The report’s components showed a rise in the prices index from 52.9 to 54.0, and an increase in the employment index from 43.4 to 46.0. Despite these gains, the overall decline was primarily driven by a continued drop in new orders and a reduction in production.
Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, noted, "Demand remains weak, with output down and inputs remaining accommodative. Companies are hesitant to invest in capital and inventory, largely due to current federal monetary policy and uncertainty surrounding the upcoming elections."
U.S. Dollar vs. Major Currencies: 5-Minute Overview
The Greenback, which had been experiencing mixed performance leading up to the ISM manufacturing PMI report, surged across the board following the release of slightly better-than-expected results.
Dollar bulls found some relief in the uptick of the employment and prices components, with the latter providing a positive outlook ahead of Friday’s NFP report.
Despite holding onto most of its gains from the PMI data, the U.S. dollar struggled to advance further against the Loonie, as the pair moved sideways in the hours following the report.
At the same time, the construction spending report revealed a 0.3% monthly decline for July, contrary to the anticipated 0.1% increase. Meanwhile, the RCM/TIPP consumer optimism index, released shortly after, showed a modest improvement.
