Week Ending June 6th – Bad Breakup
ISM Manufacturing PMI continued to decline to 48.5 and reported below analyst expectations in the May report. Several components remain in contraction, with the most prominent being New Orders, which has contracted for four consecutive months. Additionally, tariffs appear to be an overhang with imports and inventory declining.
Services PMI also declined to 49.9 in the May report which is in contraction territory. New orders saw the largest decline, also crossing into contraction territory. Respondents continue to highlight headwinds from tariff policies.
Nonfarm Payrolls for May reported 139K jobs added to the economy which was slightly above analyst expectations and lower than April’s report. The number of Federal employees continues to decline, with this last report contracting by -22K. The Unemployment rate reported for May remained unchanged at 4.2%.
JOLTS for April reported an increase in Job Openings to 7,391K, which was above the analyst estimates. Additionally, hires increased while separations slightly declined.
The Week Ahead:
- NFIB Small Business Index (6/10)
- Consumer Price Index (6/11)
- Producer Price Index (6/12)
- Michigan Sentiment – Preliminary Reading (6/13)
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