US ISM Manufacturing PMI still consistent with strong growth - ING

By FXstreet.com | July 02, 2014 AAA

FXStreet (Łódź) - Rob Carnell from ING suggests that despite the slight decline in the US Manufacturing PMI seen yesterday, from 55.4 in May to 55.3 in June, the result has to be viewed as good one.

Key quotes

"Such a headline Mfg ISM figure is consistent with GDP growth of 3.5%, and in all likelihood, the US will grow a good deal faster than that in 2Q14, following the execrable1Q14 GDP result."

"Moreover, there is some merit in taking greater comfort from the(forward looking) rising orders component of this series, than the production (current)series, which fell marginally."

"The only other notable features of the survey were 1) the softer prices paid component, which is at odds with recent inflation data, and trends in energy prices, but if believable, takes pressure off the Fed to speed up the taper."

"Secondly, the rival Markit Mfg PMI released 15 minutes prior to this release, and showing a fairly large rise, still has question marks over it."

"Until Markit’s series starts to give consistent directional signals to the longer and more watched ISM series, it is going to struggle to gain market acceptance."

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