Manufacturing activity in the United States contracted during May to its lowest level since June 2009, Institute for Supply Management (ISM) reported. The indicator, which shows activity among managers of manufacturing companies dipped to 49.0 during May, as previous month reading showed 50.7. Preliminary estimates stated an identical reading to that in April. US ISM Manufacturing shrank in May for the first time since November 2012. Usually, levels below 50.0 are signals for activity contraction.
The indicator, gauging new orders decreased to 48.8 in May from 52.3 in April, while the index, gauging output dropped to 48.6 in May from 53.5 in the preceding month. Employment index dipped by 0.1 to a reading of 50.1.
After the release of ISM Manufacturing EUR/USD pair rose sharply by almost 100 pips, touching 1.3040.
Another report announced that Construction Spending in the United States registered a 0.4% higher value in April on a monthly basis, mismatching forecasts for an increase by 1.0%. During the previous month the indicator showed a decline by 1.7%. In annual terms, Construction Spending rose by 4.3%. Non-residential construction increased by 2.2% during April, as it was supported mostly by investments in infrastucture projects. Private home construction, however, shrank by a rate of 0.1%, referring to the decline in US Housing Starts, which data was released during the previous month. Report stated, that Housing Starts decreased in April due to a lesser number of multifamily buildings.
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