🇺🇸Cable FX Macro Weekly Note: April ISM Manufacturing PMI

**As seen in Risk In The Week report 04/28/23, subscribe at cablefxm.co.uk/reports

The March ISM survey resumed declines from previous months as the index printed at 46.3 vs the prior 47.7, this was below the consensus median of 47.5. The manufacturing gauge posted the largest decline since September and is now at the lowest level since May 2020. As a reminder, the index was at 57.1 a year ago, the +10 point decline comes on exactly one year after the Fed started tightening monetary policy. As of March, all subcomponents fall below 50.0, new orders and inventories posted the largest declines, production rebounded to 47.8. The services index release followed, the gauge remains above 50.0, however, the decline was faster than expected. Economists at BMO said that tighter lending conditions, softer demand and the risks of a recession are heavily weighing on the U.S. manufacturing sector. They expect the Fed to lift rates one more time before pausing, and the ISM to continue drifting lower.