February's ISM Manufacturing PMI Falls to 47.8, Below Expected 49.5

The US manufacturing sector contracted further in February, as indicated by the ISM Manufacturing PMI falling to 47.8 from January's 49.1.

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This decline was significantly below the market's expectation of 49.5.

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Employment Index dropped to 45.9 from 47.1, and New Orders Index retreated to 49.2 from 52.5..

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Prices Paid Index edged lower to 52.5 from 52.9.

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Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, highlighted a contraction in the manufacturing sector with slowing demand and output.

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The US Dollar Index retreated following the PMI release, remaining unchanged at 104.15.

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US Dollar was strongest against the New Zealand Dollar this week.

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ISM Manufacturing PMI report is crucial for assessing the health of the US manufacturing sector.

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The report's subcomponents, such as New Orders and Prices Index, provide insights into future economic trends.

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Market participants anticipate the report's impact on the EUR/USD pair, which is currently consolidating within Fibonacci levels.

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