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US manufacturing and construction cool more than expected
In Monday's US data flow we have a surprise drop in the May ISM manufacturing index to 48.7 from 49.2 (consensus 49.5) – remember that anything below 50 is a contraction. Regional surveys and the Chinese PMI, which we use as a guide for what may be happening on the West Coast in the absence of regional surveys for that part of the US, had suggested the prospect of a little changed outcome versus April. However, there was quite a sizeable drop in the new orders index (from 49.1 to 45.4) leaving it at its lowest level since May 2023. Production came in at 50.2 versus 51.3 in April (weakest since February) and the ... (full story)