- The business activity in the US manufacturing sector contracted at a softer pace than expected in December.
- The US Dollar Index stays in negative territory near 109.00.
The business activity in the US manufacturing sector continued to contract, albeit at a softening pace in December, with the ISM Manufacturing PMI rising to 49.3 from 48.4 in November. This reading came in better than the market expectation of 48.4.
The Employment Index of the PMI survey edged lower to 45.3 from 48.1 in the same period and the Prices Paid Index climbed to 52.5 from 50.3, highlighting stronger price pressures. Finally, the New Orders Index improved to 52.5 from 50.4.
Commenting on the survey’s findings, “demand improved, production execution met November’s performance (and companies’ plans), de-staffing continued (but should end soon), and price growth was marginal,” said Timothy R. Fiore, Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee, and continued: “Fifty-two percent of manufacturing gross domestic product (GDP) contracted in December, down from 66 percent in November.”
Market reaction
The US Dollar Index showed no immediate reaction to this report and was last seen losing 0.3% on the day at 108.95.
Read the full article here