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RPT--🇺🇸❗️Cable FX Macro Weekly Note: August ISM Mfg PMI

**As seen in Risk In The Week report 08/25/23, subscribe at

We saw an uptick in the U.S. manufacturing gauge, the July survey came in at 46.4, up from the prior 46.0 but below the market forecast of 46.9. The largest rise was seen in backlog orders and customer inventories, employment posted the largest drop and is now at 44.4, the lowest since July 2020. The prices paid subcomponent rose to 42.6 from 41.8, and new orders and production indexes increased on the month. Despite the slight improvement, the manufacturing sector reported a contractionary reading for the 9th straight month. The survey noted manufacturers trying to avoid building too much inventory as they prepare for a slowdown in consumer demand. Analysts at Wells Fargo Securities do not expect the index to move back above 50.0 in August but see a significant recovery to 47.1, they added that a recovery would imply higher for longer interest rates. Wells Fargo noted that August is set to be the 10th consecutive month of contractionary readings, a streak not seen since the 1990s.



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