Prelim was 47.0Prior month was 47.9
The ISM manufacturing report is due at the top of the hour.
Chris Williamson, Chief Business Economist at S&P
Global Market Intelligence
“The September PMI survey brings a whole slew of
disappointing economic indicators regarding the health
of the US economy. Factories reported the largest
monthly drop in production for 15 months in response to
a slump in new orders, in turn driving further reductions
in employment and input buying as producers scaled
back operating capacity.“However, companies are sensing that at least part
of the drop in demand is likely to be temporary, as
spending, investment and inventory building have been
paused in many cases amid the uncertainty caused by
the Presidential Election. The prospect of lower interest
rates has meanwhile raised confidence in the longer-
term outlook, with firms anticipating that demand will
be rekindled by lower borrowing costs if the political
environment improves. Hence, despite the deterioration
in the current business situation, business expectations
about the year ahead have in fact improved.
“While the current weak demand environment has
helped keep cost pressures low in the manufacturing
sector, the potential for geopolitical events to drive
energy prices higher alongside possible spikes in
shipping prices poses upside risks to the inflation
picture.”
This article was written by Adam Button at www.forexlive.com.
