Fiper | ISM Manufacturing PMI

The ISM Manufacturing Index determines the level of activity of purchasing managers in the manufacturing sector, and a reading above 50 indicates expansion. To get a reading of this indicator, purchasing managers determine the level of certain elements in the sector, including employment, production, new orders, resource allocation, and inventories.
The ISM manufacturing PMI rose to 47.7 in February 2023 from 47.4 in January, the lowest level since May 2020, but fell short of expectations of 48. The reading indicated a fourth consecutive month of lower factory activity as businesses continued to slow. To better match demand for the first half of 2023 and prepare for growth in the second half of the year. New orders (47 vs 42.5) and order backlogs (45.1 vs 43.4) contracted at a slower pace and the Customer Inventory Index remained at "very low" levels (46.9 vs 47.4), which is positive for future production. On the other hand, a larger decline was observed in production (47.3 vs. 48) while employment decreased (49.1 vs. 50.6) although companies continued to indicate that they will not drastically reduce the number of people, as sentiment is positive around the second half of the year. At the same time, price pressures increased (51.3 vs. 44.5), supporting the agreement between buyers and sellers to place orders in the near term.

Predictions for today's statement

Expectations for today's statement refer to the level of 47.5
In the event that the statement was issued and recorded a lower level than expectations, this negatively affects the currency
In the event that the statement was issued and recorded a level higher than expectations, this will positively affect the currency