ISM Predicts Slight Decline in February Manufacturing PMI

ISM Predicts Slight Decline in February Manufacturing PMI

The Institute for Supply Management (ISM) recently released its forecast for the February 2025 Manufacturing PMI, projecting a reading of 48.2. This represents a slight decrease from the previous forecast of 49.3.

The ISM Manufacturing PMI is a significant economic indicator that assesses the health of the US manufacturing sector. It's derived from a survey of over 400 manufacturing companies and encompasses key factors like employment, production levels, inventories, new orders, and supplier deliveries. 

Traditionally, a PMI reading above 50 suggests expansion within the manufacturing sector, which can potentially strengthen the US Dollar. However, the current forecast of 48.2 indicates a possible contraction in manufacturing activity.

Eurozone Inflation Forecast Slightly Dampened

Eurostat, the statistical office of the European Union, released its latest forecast for consumer price inflation in the euro area today. The projected year-on-year change in the Consumer Price Index (CPI) for February 2025 stands at 2.3%, a slight downward revision from the previous forecast of 2.4%.

The CPI, a key economic indicator, measures the average change over time in the prices paid by consumers for a market basket of goods and services. It provides valuable insights into the purchasing power of consumers and the overall cost of living within the eurozone.

While the latest forecast suggests a modest cooling of inflation, it's important to note that several factors could still influence the actual inflation trajectory. These include global economic developments, geopolitical events, commodity price fluctuations, and shifts in consumer behavior.

The Eurostat data will be closely monitored by policymakers, investors, and businesses as they assess the economic outlook for the euro area and make informed decisions.