🇺🇸❗️Cable FX Macro Weekly Note: ISM July Manufacturing PMI

**As seen in Risk In The Week report 07/28/23, subscribe at cablefxm.co.uk/reports

ISM Manufacturing survey extended declines in June, the index fell to 46.0 from the prior 46.9, which came to miss the median projection of 47.1. As of June, all major sub-indices contributed to the downside, the largest change was recorded in customer inventories and the measure dipped 5.2 points to 46.2, production followed with a drop of 4.4 points. At 46.0, the U.S. manufacturing gauge is the lowest since May 2020, the index 6-month average is now 46.9. Deliveries, new orders, imports, and backlog orders were the only measures to post increases in June. The survey data recorded 22% of industries reporting overall growth, this was unchanged from May, the share of industries paying higher prices fell to 17% from the prior 28%, this measure ticked at 50% in April.

Economists at Wells Fargo Securities said they expect the divergence between the services and manufacturing sectors to continue in July, however, they are set for an ISM manufacturing index rebound to 47.1 (above consensus). Wells Fargo noted the manufacturing survey’s high sensitivity to rate increases as the measure has contracted for eight straight months.