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.

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

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

Prices Paid Index edged lower to 52.5 from 52.9.

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

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

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

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

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

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