US: ISM Manufacturing PMI drops to 49 in November vs. 49.8 expected
|- ISM Manufacturing PMI dropped into contraction territory below 50 in November.
- US Dollar Index continues to push lower, losing more than 1% on the day.
The economic activity in the United States manufacturing sector contracted in November with the ISM Manufacturing PMI declining to 49 from 50.2 in October. This reading came in below the market expectation of 49.8.
Further details of the publication showed that the Prices Paid Index component dropped to 43 from 46.6, the Employment Index edged lower to 48.4 from 50 and the New Orders Index declined to 47.2 from 49.2.
Assessing the data, "with Business Survey Committee panellists reporting softening new order rates over the previous six months, the November composite index reading reflects companies' preparing for future lower output," said Timothy R. Fiore, Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee.
Market reaction
The US Dollar stays under constant selling pressure following this report and the US Dollar Index was last seen losing 1.1% on the day at 104.70.
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