US ISM manufacturing is expected to post a modest rebound - TDS

Research Team at TDS, suggests that the US ISM manufacturing is expected by both TD and the market to post a modest rebound after the sharp deterioration in August.

Key Quotes

“Markets look for a 50.2 print, while TD expects 50.0 (see full preview). While the unusually sharp decline in August argues for a correction in the index, the declines in the Philly Fed Index and Empire Manufacturing (on an ISM-weighted basis) bias us towards a lesser rebound.

Meanwhile, both TD and the wider market look for motor vehicle sales to push higher in September, with TD calling for an above-consensus 17.5m units (mkt: 17.4m). Seasonal factors are behind some of the rebound, as labor day weekend tends to be one of the strongest three-day periods of the year for retail auto sales. Lastly, construction spending is expected by the market to increase by 0.3% m/m in August.”