US ISM Manufacturing PMI Expected to Show Solid Activity

The US Institute for Supply Management (ISM) is set to release its July Manufacturing Purchasing Managers Index (PMI), a closely followed indicator of business activity in the US manufacturing sector.

Market consensus anticipates an improvement to 54 in the headline indicator, matching May's reading and signaling expansion above 50.

The Prices Paid component is expected to ease to 70.3, its lowest inflation reading since February, but still significantly above the six-month average before the war.

A strong PMI release, coupled with an expansion in employment, could improve investors' confidence about the US economy and strengthen the case for some Federal Reserve monetary tightening this year, supporting the US Dollar.