US: Downturn in manufacturing? - TDS

Analysts at TD Securities note that Richmond Fed manufacturing survey of the US posted a sharp decline at -12 in July from 3 before (mkt: +5), dropping to its lowest level since 2012.

Key Quotes

“The decline was broad-based, with 4 of the five main components retreating during the month. This was also reflected on a 5pt slip in the ISM-adjusted measure to 48.4 — its first time below 50 since 2016.”

“Recall that the index had been at fairly high levels in recent months so a decline was not completely unexpected. It is also out of sync with the regional surveys released to date that went through a sharp decline in June but have recovered in July (NY Empire and Philly Fed).”