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Mixed Regional Fed Manufacturing Surveys Point To Upside For ISM

US DATA
  • The Richmond Fed manufacturing index increased more than expected in June to -7 (cons -12) after -15.
  • It completes a mixed June for regional Fed mfg surveys, with Empire beating with a surprise jump to +6.6, Philly in line at -13.7, Dallas with a small miss at -23.2 and Kansas missing at -12.
  • The magnitude of the Empire jump (from -31.8 to +6.6) drags the five-series average to its highest since Dec at -9.9 and implies some upside risk to Monday’s ISM mfg release [see chart below], but before then we’ll see the MNI Chicago PMI on Friday.

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