ISM Manufacturing PMI at 49.8%, Near a 3-Year Low - 1.8.2012

Institute of Supply Management Manufacturing Index in U.S rose slightly to 49.8% in July from 49.7% in June, 0.1% above the 3-year low of previous month. Investors consensus for the ISM Manufacturing Index was at 50.3 for July however this reading was missed and the index remained below 50%. The Index remained below 50% for a second consecutive month in July for the first time in the last 3-years, readings below 50% indicate that economic activity of the manufacturing sector contracted according to the ISM. Lastly, the greenback did not move much today, the US dollar index that captures US dollar’s performance against its six major counterparties initially fell today to 82.48 and then recovered to 82.71 mainly due to better than expected private sector job data.