On the heels of Markit's US PMI missing expectations but rising to its highest since May 2010 (with notable inflation signals and domianted by weakness in small business) despite new export orders tumbling; ISM printed at 55.3, down from May and missing expectations. Only 50% of survey respondent s expect to increase jobs – the lowest number in 2014. New export orders also fell in ISM. Following last month's utter SNAFU, we are not exactly sure whether this is real yet. So far the market reaction is positive to this bad news so we do not expect a revision…
US PMI missed expectations but reached its highest since May 2010…
Notably, medium-sized manufacturers (100- 499 employees) saw the strongest improvement in business conditions during June, while small-sized manufacturers (1-99 employees) recorded the least marked upturn in overall operating conditions.
As Markit notes (on the tumble in new export orders)…
Export performance, however, remains a real disappointment, and trade will likely act as a drag on the economy again in the second quarter. If worries about tighter policy from the Fed start to dampen domestic demand at the same time as exporters are struggling, growth could slow again in the second half of the year
But then ISM hit…
Remember last month's total SNAFU…So let's not hold our breath quite yet
Today's print (so far)
The fewest firms since 2013 expect to increase employment and new export orders fell…
via Zero Hedge http://ift.tt/1xb1uXT Tyler Durden