· Event impact
ISM Manufacturing Expected to Show Continued Expansion in June
Transmission path
Growth expectations support cyclical equities and industrial demand.
Market mechanism
Growth expectations support cyclical equities and industrial demand.
Extended read
The upcoming ISM Manufacturing report is a critical gauge for the health of the U.S. industrial base. With an expected reading of 53.5, the data suggests that despite higher interest rates, the manufacturing sector is successfully navigating the cycle. The relationship between new orders and inventories is particularly constructive, indicating that demand is sufficient to clear current stock and necessitate further production. This data point will be closely watched by the Fed as it weighs the strength of the economy against its new hawkish 2026 outlook.
Exposed assets
XLI
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