• ISM Manufacturing PMI declined slightly in June, pointing to ongoing contraction.
• US Dollar stays under bearish pressure after disappointing PMI data.

The business activity in the US manufacturing sector continued to contract in June, with the ISM Manufacturing PMI edging lower to 48.5 from 48.7 in April. This reading came in below the market expectation of 49.1.

The Employment Index of the PMI survey declined to 49.3 from 51.1 in May, while the New Orders Index improved to 49.3 from 45.4. Finally, the Prices Paid Index, the inflation component, retreated to 52.1 from 57 in the same period.

Commenting on the survey's findings, "US manufacturing activity continued in contraction at the close of the second quarter. Demand was weak again, output declined, and inputs stayed accommodative," said Timothy R. Fiore, Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee. "Panelists’ companies reduced production levels month over month as head count reductions continued in June," Fiore added