Investing.com – The manufacturing PMI data has now been released contrary to market expectations, as this indicator is important in the outlook for the coming period, as it gives an overview of the economy’s performance in general and whether it is heading towards recession or not.
The data came negative this time, to warn that the economy may head into recession in the coming period, which is what it wants, given that this contributes to reducing inflation, and thus this data supports the federal calm in its monetary policy. That is, the data supports the rise on the one hand, and negatively affects it on the other hand.
The Manufacturing Purchasing Managers’ Index for the month of May recorded 48.4 points, after expectations had indicated that it would record 48.5 points, while it recorded 50.2 points in the previous reading.
(ISM) recorded for the month of May 46.9 points, while expectations indicated that it would score 47 points, and the previous reading was at 47.1 points.
While (ISM) scored 44.2 points in May after it was destined to score 52 points, after it scored 53.2 points in February.
The Industrial Support Management (ISM) index determines the activity level of purchasing managers in the industrial sector. A reading above 50 indicates expansion, and vice versa if it is below 50 points.
To get a reading of this indicator, purchasing managers determine the level of certain elements in the sector, including employment, production, new orders, resource allocation, and inventories. The bullish trend a positive impact on the country’s currency.
Currency traders closely monitor this index, as purchasing managers, due to the nature of their work, can access data about their companies’ performance, which makes this index a leading indicator of general economic performance.
Unemployment and employment data released a while ago
It recorded 232,000 applications, less than the forecast of experts, who expected 235,000. Especially since it recorded 229 thousand the week before last, but this reading has been revised to record now 230 thousand.
Thus, it rose in 4 weeks to 229.50 thousand, after it recorded the week before last 232 thousand.
The weekly unemployment indicator provides very timely data, identifies the amount of individuals who claimed unemployment insurance for the first time during the past week and traders see the unemployment rate as an indicator that gives little indication of the future performance of the economy. The two downtrends have a positive effect on the country’s currency, as working people tend to spend more money.
While he reported that the economy added 278 thousand jobs for the month of May, while experts expected an addition of 170 thousand jobs.
The previous April reading was revised to 291 thousand from 296 thousand.
This indicator determines the change in the level of those hired during the past month, with the exception of those hired in the agricultural sector. This indicator is published two days before the publication of the ADP Employment Report of the Official Bureau of Human Resources Statistics, which provides solutions in the field of employment for companies. Since its release in 2007, it has proven to be a good indicator for predicting the employment report.
Dollar and gold now
It rose by 0.5% at $1,991 an ounce.
While spot contracts rose by 0.52% to 1973 dollars.
On the other hand, the dollar index fell by 0.44% to 103.787 points.
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