Strong Dollar Oil Slump Hit US Manufacturing Harder Than Services
The ISM report indicates that low oil prices positively impact manufacturing profits by reducing raw material costs, while having a smaller effect on non-manufacturing. A strong USD presents mixed effects for manufacturing, pressuring exports, but most firms have adapted. The impact on non-manufacturing is limited, as service export pricing is less sensitive to exchange rates. Businesses need to pay attention to the macroeconomy and adjust strategies flexibly. The report highlights the nuanced effects of these economic factors on different sectors.
