The ISM Manufacturing PMI now stands at 51.7 points. A marginal rise from 51.3 in September to 51.5 points was expected. This is the highest since May. CB Consumer Confidence rose from 70.3 to 72.2 points, within expectations.
The worrying part of the report is the employment component, which fell from 54.7 to 52.1 points. New orders are on the rise at 54.2 points. Scores above 50 represent economic expansion and scores below this figure represent contraction.
ISM Manufacturing PMI slid under 50 during the summer, but it didn’t fall too low. Manufacturing remains the weaker link in the US economy, with very sluggish growth.
CB Consumer Confidence, delayed to the Sandy Superstorm, was expected to rise from 70.3 to 72.4 points. Also in the US, Construction Spending rose by 0.6%, a bit under expectations of +0.7%.
EUR/USD is now sliding, yet within the narrow range of 1.2960 to 1.30. USD/JPY is steady above 80.
Earlier, Markit’s manufacturing PMI for October was revised down from 51.5 to 51 points. All in all, both indicators point to very slow growth.
Better news came from ADP, that showed a big gain in private sector jobs.
