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2 Mar 2015
US ISM drops; now waiting for ADP - ING
FXStreet (Guatemala) - James Knightley, analyst at ING Bank explained that the The ISM manufacturing survey has dropped to 52.9 in February versus 53.5 in January.
Key Quotes:
"The consensus prediction was 53.0 so is pretty much in line with expectations, but it is the weakest outcome since January last year. Bad weather may well have depressed activity a little and the West Coast port disruption could also have played a part. Consequently, we expect to see a better number for March."
"In terms of the details, production fell nearly three points to 53.7 - a 12 month low – while new orders dropped to its lowest reading since May 2013. There was a pick-up in the backlog of orders, which is a sign of bad weather influencing the report. Export orders deteriorated while the employment component fell nearly three points to the lowest level since June 2013."
"This is a concern, but the bulk of jobs growth has been driven by services so we will have to wait for Wednesday’s ADP and non-manufacturing ISM employment numbers to see whether there are downside risks to the consensus prediction of a 235,000 increase in non-farm payrolls."
Key Quotes:
"The consensus prediction was 53.0 so is pretty much in line with expectations, but it is the weakest outcome since January last year. Bad weather may well have depressed activity a little and the West Coast port disruption could also have played a part. Consequently, we expect to see a better number for March."
"In terms of the details, production fell nearly three points to 53.7 - a 12 month low – while new orders dropped to its lowest reading since May 2013. There was a pick-up in the backlog of orders, which is a sign of bad weather influencing the report. Export orders deteriorated while the employment component fell nearly three points to the lowest level since June 2013."
"This is a concern, but the bulk of jobs growth has been driven by services so we will have to wait for Wednesday’s ADP and non-manufacturing ISM employment numbers to see whether there are downside risks to the consensus prediction of a 235,000 increase in non-farm payrolls."