Market Turbulence: ISM Manufacturing PMI Plummets to 48.0, SP500 Hits Session Lows Amid Economic Downturn
ISM Manufacturing PMI Drops to 48.0; S&P 500 Tests Session Lows Amid Mixed Economic Signals
August 1, 2025, 14:16 GMT – By Vladimir Zernov
The report on August 1, 2025 presents data where numbers point to slow factory work and a mixed mood in the market. The ISM reading falls below 50 as factory tasks slow. The S&P 500 shows early signs of weakness.
ISM Manufacturing PMI Shows Contraction
The ISM report places the Manufacturing PMI at 48.0 in July, down from 49.0 in June. The index now stays below 50; a number that marks slow activity. New orders edged up from 46.4 in June to 47.1 in July but stayed in the slow zone. Production moved from 50.3 to 51.4. This shift hints that output holds some strength amid the slow trend.
S&P Global Manufacturing PMI Aligns with ISM Data
The final S&P Global Manufacturing PMI dropped from 52.9 in June to 49.8 in July. The change sends the figure into a below-threshold range. It matched the forecast near 49.5. This match ties back to worries over the weak state of manufacturing.
Consumer Sentiment Shows Slight Improvement
The University of Michigan’s Consumer Sentiment index climbed from 60.7 in June to 61.7 in July. The rise nearly met the forecast of 62. The University still notes that the overall mood on spending remains low. Inflation views limp too. A year-ahead feeling slipped from 5.0% to 4.5%, while long-run views moved from 4.0% to 3.4%. This change may guide the next Fed steps.
Market Reactions: Dollar, Gold, and Equities
Market moves followed the report. The U.S. Dollar Index dropped close to session lows, dipping under the 98.90 mark as traders saw the weak manufacturing news. Gold prices rose near session highs toward $3,350 per ounce. A drop in Treasury yields helped push gold higher. In stocks, the S&P 500 fell near 6,220 after the data came out. Traders stayed alert after the weak ISM and the new jobs report. The Non-Farm Payrolls number remains a key signal today as investors look for hints on what the Fed might do next.
Looking Ahead
Observers watch upcoming figures and Fed notes for more clues about the U.S. economy. The drop in manufacturing numbers mixed with falling inflation views creates a scene where growth and price control face a tough task. For traders and investors, the news shows that keeping a close watch on key numbers helps when saving strategies for a shifting economy.
About the author: Vladimir Zernov is an independent trader with over 18 years of experience on stocks, futures, forex, indices, and commodities. He studies both near-term moves and longer trends in the market.
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