- Lowest since Feb 2010
- Prior reading was 53.7
- Employment 54.7 vs 50.1 in May — highest since Feb
- New orders 50.8 vs 56.0 in May — lowest since July 2009
- Prices paid 52.5 vs 51.1 in May
- Comments like: “Slow growth — intense downward price pressure from customers.”
- Full text of the report
The improvement to employment adds some upside risks to Friday’s non-farm payrolls report but the weakness in new orders and the overall index point to a struggling economy and ultimately, that will spill over to employment.
The market is being pulled in different directions because of the employment index but generally the US dollar is weaker. I think that’s the right call but it might be a better idea to sell the US dollar after NFP.
