Today's ISM report confirmed what was already visible in the Markit PMI figures (see discussion) - the "spring slowdown" in US manufacturing is here. The table below shows the breakdown of the month-over-month changes - orders and production seem to be the main drivers. Weakness in Backlog of Orders does not bode well for the sector going forward.
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| Source: ISM |
The ISM manufacturing indicator is now at the lowest level since 2009:
Bond prices rose as a result, with the expectation that the US growth is not nearly as robust as some have thought. Of course bond investors are still in a selling mood, and we are likely to see yields drift higher.
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| 10y note futures (source: Investing.com) |
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