US ISM Preview: We expect a bounce in May - Wells Fargo

On Thursday, the ISM Manufacturing report will be released in the US. Analysts from Wells Fargo, expect the headline index to rise to 55.2, above the reading of market consensus of 54.9.

Key Quotes:

“Manufacturing sentiment, as measured by the ISM manufacturing index, downshifted in April to 54.8 from March’s 57.2 reading. The production subcomponent continued to show improvement, however, the new orders component softened for the month. The closely watched employment component also weakened on the month.”

“We expect a bounce back in the headline index reading for May to 55.2. We continue to expect the industrial sector to slowing improve this year as global growth begins to firm and domestic business investment slowly begins to pick up once again. Our expectation is that industrial production will accelerate to around 3.0 percent in the second quarter, making up ground lost in Q1 before averaging 2.4 percent in both the third and fourth quarters of this year.”