Will ISM PMI Indicate Contraction?

Will ISM PMI Indicate Contraction?

What will happen?

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

Why is it important?

It’s no secret that the economy is damaged due to inflation, rising rates, supply issues, and geopolitics. Thus, there is a high chance of ISM PMI decrease. Moreover, the index may enter the contraction zone (fall below 50.0) and put even more pressure on the USD and stocks. If purchasing managers consider the economy weak, that goes for the broad market too.

Last time, the result was less than expected (55.4 Actual vs 57.5 Forecast). The reading caused volatile moves in EURUSD. However, the pair slid lower due to the euro weakness. A 1-lot sell trade on the top of the movement would have brought a profit of $350.

news 1.png

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


Will Fed Chair Powell Move the USD?
Will Fed Chair Powell Move the USD?

The Fed Chair Jerome Powell will testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee on June 22-23 at 17:00 GMT+3.

Latest news

US PCE May Soar Soon
US PCE May Soar Soon

The United States Bureau of Economic Analysis will release monthly Personal Consumption Expenditures (PCE) on June 30, 15:30 GMT+3.

Deposit with your local payment systems

Be on top of your game

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