ISM Manufacturing PMI

The ISM Manufacturing Index determines the activity level 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 some elements in this sector, including employment, production, new orders, resource allocation, and inventories.

The ISM manufacturing PMI fell to 53 in June 2022 from 56.1 in May, indicating the slowest growth in factory activity since June 2020, and below market expectations of 54.9. New orders were contracted for the first time in two years (49.2 vs. 55.1), a sign that higher interest rates are hurting demand. Also, employment declined further (47.3 vs 49.6) despite companies improving their progress in tackling medium-term labor shortages at all levels of the supply chain. At the same time, supplier deliveries slowed (57.3 vs. 65.7) while production (54.9 vs. 54.2) and inventories (56 vs. 55.9) increased slightly faster and price pressures eased (78.5 vs. 82.2). Meanwhile, business sentiment remained upbeat regarding demand, but companies continue to note supply chain and pricing issues as their biggest concerns.

Forecasts for today's statement

Expectations for today's statement indicate a level of 52.3

In the event that the statement was issued and recorded a lower level than expectations, this would negatively affect the currency
In the event that the statement was issued and recorded a higher level than expectations, this would have a positive impact on the currency

Time

The statement will be issued at 5 pm Mecca time