EZ CPI’s better but not fundamentals no where close – ANZ

FXStreet (Guatemala) – James Knightley, analyst at ING explained that the October US ISM manufacturing index has come in at 50.1, which is barely changed from September’s 50.2 figure.

Key Quotes:

“Consensus was 50.0 although the strong regional indicators on Friday had offered some hope of a marginally stronger figure.”

“The details are very mixed. Both new orders and production improved to stand at 52.9, but employment fell to 47.6 from 50.5. By falling into contraction territory (sub-50) this suggests some downside risk for Friday’s jobs number, although manufacturing is dwarfed by the service sector in terms of overall employment and a stronger non-ISM figure would raise optimism once again.”

“It is clear that the manufacturing sector is going to continue to underperform non-manufacturing given that dollar strength and external demand weakness are clear drags for the sector. However, we are more hopeful for the service sector while construction spending grew 0.6%MoM (+14.3%YoY). As such, the US economy in aggregate should perform better in 4Q15 than the disappointing 3Q reading of 1.5% annualised. This will keep thoughts of a December Fed rate hike alive.”

James Knightley, analyst at ING explained that the October US ISM manufacturing index has come in at 50.1, which is barely changed from September’s 50.2 figure.

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