ISM PMI Indicates Contraction

ISM PMI Indicates Contraction

What will happen?

The US Institute for Supply Management will release ISM manufacturing PMI on July 1, 17:00 GMT+3. It’s a leading indicator of economic health because businesses react quickly to market conditions. Purchasing managers hold, perhaps, the most current and relevant insight into companies’ views of the economy. Around 300 purchasing managers take part in the survey. They assess business conditions, including employment, production, new orders, prices, etc. 

Why is it important?

It’s no secret that the economy is damaged by inflation, rising rates, supply issues, and geopolitics. Thus, there’s a high chance of the ISM PMI decrease. Moreover, the index may enter the contraction zone (fall below 50.0) and press even more on the USD and stocks. If purchasing managers consider the economy weak, the broad market should also be worried.

Last time, the result was higher than expected (56.1 Actual vs 54.4 Forecast). The reading caused volatile moves in EURUSD because the market didn’t expect the index to rise. Minutes after the release, the USD plunged by 800 points. A one-lot sell trade at the moment of the release would have brought a profit of $800.


How to trade on ISM manufacturing PMI?

Compare the actual results with the expectations. The market will probably expect numbers above 50.0. Thus, if the reading is lower than 50.0, the USD will be under heavy pressure.

  • If the actual numbers exceed expectations – the USD will move sideways
  • Otherwise – the USD will fall.

 Check the Economic Calendar.

Instruments to trade: EURUSD, GBPUSD, USDJPY.



How to trade the JPY?
How to trade the JPY?

Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:

Latest news

Crucial News For The Following Week
Crucial News For The Following Week

Consumer Price Index, Existing Home Sales, US Fed rate decision - all of these things we will discuss in our new review. Don't miss it out!

Focus on Banks' Meeting and NFP
Focus on Banks' Meeting and NFP

The RBA and the Bank of Canada will add volatility to the AUD and the CAD, while USD is expected to be boosted by the Non-farm payrolls.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera