US manufacturing data were released today slightly higher than expected giving a reading of 60.4 versus 59.9 forecasted. However, this was a drop from 61.2 in March’s PMI figure. Meanwhile, ISM Prices Paid ticked up by 0.5% over the preceding month to 85.5.
Norbert J. Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee states in the official report: “The New Orders and Production Indexes continue to drive the PMI, as they have both exceeded 60 percent for five consecutive months. Manufacturing employment appears to have developed significant momentum, as the Employment Index readings for the first four months of 2011 are the highest readings in the last 38 years.”
ISM manufacturing data are released by the Institute for Supply Management in the United States on a monthly basis. Any number above 50.0 indicates industry expansion, and anything below indicates contraction.
It is a leading indicator of economic since purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.
After release of the news the US Dollar dropped, and EURUSD rose by 20 pips in five minutes, from 1.4836 to 1.4856 and has continued its upward trend to hit a new 17-month high of 1.4901. USDJPY dipped from 81.27 to 81.05.