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

**As seen in Risk In The Week report 05/27/23, subscribe at cablefxm.co.uk/reports

The April ISM manufacturing PMI rebounded to 47.1 from the prior 46.3, this was higher than the expected 46.8. A month prior, the U.S. gauge of manufacturing sentiment had fallen to the lowest level since the pandemic as prices paid eased and new orders softened. The April lift in employment sent the index to 50.2 from the prior 46.9, above its 6-month average. The largest increase was posted by prices paid, the index jumped by 4.0 percentage points to 53.2, the manufacturing price gauge is now at the highest since July. More recently, the May preliminary S&P Global Manufacturing PMI fell to contractionary territory at 48.5 vs the prior 50.2, regional Fed activity indicators are mixed in May. Philly Fed Business Outlook Index and the Kansas City Fed Activity Indicator rebounded, the Empire State and Richmond Fed fell on the month, the former dipped to the lowest since January. Our aggregate measure of Fed activity indicators resumed its downtrend in May after stabilizing in April. Analysts at CIBC head into the release noting mixed signals, durable orders have risen while regional surveys show softness. CIBC adds that the surveys are likely to be showing pessimist future expectations more than actual economic data, they forecats the release at 46.6.