U.S. ISM non-manufacturing index rises in June

The U.S. ISM Supply Management’s non-manufacturing index rose in June by 0.5 points to 59.1 in June, which marked the second straight monthly rebound, as compared with expectations of a moderate fall to 58.3. The details came in mixed, with indices such as employment and supplier deliveries giving back last month’s gains, returning near April levels.

Meanwhile, indices that are already near multi-year highs such as business activity and new orders, continues to rebound for the second and third straight months, respectively. New export orders also rebounded 3 points to 60.5, partly rebounding from last month’s four point fall. Among the remaining subcomponents, the backlog of orders and prices retreated, after a sharp rise in the prior month.

The vast majority of industries recorded growth on the month. Survey respondents’ comments continued to be positive with respect to business conditions and the overall economy, but there is a continuing concern related to “tariffs, capacity constraints, and supply deliveries”. Respondents indicate that the trade issue are having an “inflationary influence on costs”, and are “creating price uncertainty”.

“The recent ISM prints are consistent with an economy that is running well above capacity, reinforcing our expectations for a second quarter rebound in economic growth to around double its first-quarter pace”, noted TD Economics in a research report.

At 18:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 7.71934. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex