U.S. ISM manufacturing index likely to have rebounded in May, says Wells Fargo

U.S. manufacturing sentiment, gauged by the ISM manufacturing index is expected to have bounced back in May after dropping slightly in April. The index had dropped to 54.8 in April from March’s print of 57.2. The production subcomponent continued to indicator improvement, but the new orders component weakened for the month. The closely watched employment component also softened in the month.

According to a Wells Fargo research report, the ISM manufacturing index is expected to have risen in May to 55.2. The industrial sector is expected to continue improving gradually in 2017 as global growth starts to strengthen and domestic business investment slowly starts to rebound again.

Industrial production is expected to accelerate to about 3 percent in the June quarter, making up for the loss recorded in the first quarter before averaging 2.4 percent in both the third and fourth quarters of 2017, added Wells Fargo.

At 21:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was slightly bullish at 59.5076. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex