Forex Investment and Currency Trading

The ISM manufacturing index surged higher in August to 52.9 from 48.9 in July, well above the consensus (50.5) . This is the first reading above the breakeven level of 50 since January 2008 and a clear sign that the manufacturing sector is recovering. Especially encouraging was a jump in new orders to 64.9 in August from 55.3 in July, the highest level since December 2004, while production climbed to 61.9 from 57.9. The employment index also continued to improve, rising to 46.4 in August from 45.6. The index of supplier deliveries increased to 57.1 from 52.0, signaling slowing delivery times as activity warms up again. The inventories index edged higher to 34.4 from 33.5 but remained quite low, indicating that most manufacturers are continuing to draw down inventories. Outside the components of the overall composite, export orders shot up to 55.5 from 50.5 while imports edged lower to 49.5 from 50.0. The prices index posted another five-point gain, rising to 65.0.