- Business activity in the US manufacturing sector contracted at a weaker-than-expected pace in December.
- The US Dollar Index remains in the negative territory near 109.00.
Business activity in the US manufacturing sector continued to contract, albeit at a declining pace in December, with the ISM manufacturing PMI rising to 49.3 from 48.4 in November. This reading was better than market expectations of 48.4.
The employment index in the PMI survey fell to 45.3 from 48.1 in the same period and the prices paid index rose to 52.5 from 50.3, highlighting strong price pressures. Finally, the new orders index improved to 52.5 from 50.4.
Commenting on the survey results, Timothy R. Fiore, head of the institute: “Demand improved, production execution was in line with November performance (and corporate plans), layoffs continued (but should end soon), and price growth was marginal.” “Manufacturing GDP shrank 52% in December, down from 66% in November,” the Supply Administration’s Manufacturing Business Survey panel said.
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.