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5 May 2015
US manufacturing indicators yet to recover much - RBS
FXStreet (Bali) - Greg Gibbs, FX Strategist at RBS, notes that US manufacturing surveys stabilised and improved a little on average in April.
Key Quotes
"Manufacturing surveys in the US stabilised and improved a little on average in April, but the bounce back is tepid after the significant falls in Q1.
The broad closely watched ISM report was steady at 51.5 in April, after falling for 5 months in a row from 57.9 in October last year."
"The details were more up-beat with gains in the key new orders and production components and a fall in the inventory component. And the breadth of industries above 50 (in growth) also expanded from 10 to 15 out of 18."
"However, the employment component fell from 50.0 to 48.3 a low since 2009, down from the recent peak of 57.4 in August last year, suggesting manufacturing jobs declined in April."
"The manufacturing sector may be experiencing a hangover from the West Coast port strike that may dissipate further in coming months, and the drag from lower activity and capital investment in the energy sector that is likely to be a more persistent drag."
Key Quotes
"Manufacturing surveys in the US stabilised and improved a little on average in April, but the bounce back is tepid after the significant falls in Q1.
The broad closely watched ISM report was steady at 51.5 in April, after falling for 5 months in a row from 57.9 in October last year."
"The details were more up-beat with gains in the key new orders and production components and a fall in the inventory component. And the breadth of industries above 50 (in growth) also expanded from 10 to 15 out of 18."
"However, the employment component fell from 50.0 to 48.3 a low since 2009, down from the recent peak of 57.4 in August last year, suggesting manufacturing jobs declined in April."
"The manufacturing sector may be experiencing a hangover from the West Coast port strike that may dissipate further in coming months, and the drag from lower activity and capital investment in the energy sector that is likely to be a more persistent drag."