USDCHF Above 0.90 Despite Softer ISM Manufacturing

• US May ISM manufacturing index: 48.5 vs 49.1 expected, previous month 48.7.
• Prices paid: 52.1 vs 57.0 prior.
• Employment: 49.3 vs 51.1 last month.
• New orders: 49.3 vs 45.4 last month.
• Production: 48.5 vs 50.2 last month.
• Supplier deliveries: 49.8 vs 48.9 last month.
• Inventories: 45.4 vs 47.9 last month.
• Backlog of orders: 41.7 vs 42.4 last month.
• New export orders: 48.8 vs 50.6 last month.
• Imports: 48.5 vs 51.1 last month.

Comments in the report:

• High customer order volumes [Chemical Products].
• Customers cutting orders with short notice affecting suppliers [Transportation Equipment].
• Instability in consumer demand and inventories at retail and food service [Food, Beverage & Tobacco Products].
• Sufficient inventory from the previous month to meet current commitments [Computer & Electronic Products].
• Customers increasing orders to build buffer stocks for future shortages [Electrical Equipment, Appliances & Components].
• Weak demand in main divisions leading to inventory reduction [Fabricated Metal Products].
• Decreasing sales backlog resulting in workforce furloughs [Machinery].
• Lower production levels due to reduced product demand [Miscellaneous Manufacturing].
• Elevated financing costs dampening residential investment demand, leading to reduced inventory of production components [Wood Products].
• Slight increase in orders due to seasonal restocking [Plastics & Rubber Products].