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1 Jun 2015
Dollar stronger: US ISM manufacturing - ING
FXStreet (Guatemala) - James Knightley, analyst at ING bank noted and explained that the US ISM manufacturing index for May has come in at 52.8 versus 51.5 in May.
Key Quotes:
"This is above the 52.0 consensus expectation and is the best reading since February. The production component actually fell (to 54.5 from 56.0 in April), but there was a decent rise in new orders (55.8 vs 53.5 previously) and employment (51.7 vs 48.3)."
"Indeed, new orders are at a five month high while the employment component is recording its strongest reading since January. This all hints at a rebound from the economic contraction experienced in 1Q15 although other numbers, such as today’s personal income and spending report, suggest it won’t be particularly vigorous growth in 2Q15. Nonetheless, with the labour market continuing to make progress and real incomes moving in the right direction we suspect that consumer spending will make a more positive contribution to the growth story in the second half of the year with the Federal Reserve likely responding in 3Q15 with tighter monetary policy."
Key Quotes:
"This is above the 52.0 consensus expectation and is the best reading since February. The production component actually fell (to 54.5 from 56.0 in April), but there was a decent rise in new orders (55.8 vs 53.5 previously) and employment (51.7 vs 48.3)."
"Indeed, new orders are at a five month high while the employment component is recording its strongest reading since January. This all hints at a rebound from the economic contraction experienced in 1Q15 although other numbers, such as today’s personal income and spending report, suggest it won’t be particularly vigorous growth in 2Q15. Nonetheless, with the labour market continuing to make progress and real incomes moving in the right direction we suspect that consumer spending will make a more positive contribution to the growth story in the second half of the year with the Federal Reserve likely responding in 3Q15 with tighter monetary policy."