US: ISM Manufacturing PMI falls to 58.7 in December vs. 60.0 expected
|- ISM PMI fell to 58.7 in December from 61.1 in November, below the expected 60.0, its lowest since January 2021.
- The price paid subindex saw its largest drop since March 2020 to 68.2 from 82.4.
According to a survey compiled by the Institute of Supply Management, US Manufacturing PMI fell to 58.7 in December from 61.1 in November. That was lower than the expected reading of 60.0 and was the lowest reading since January 2021, when it also came in at 58.7.
In terms of the sub-indices, in a good omen for Friday's official December labour market report, the employment subindex rose to 54.2 from 53.3, which is its highest reading since April 2021. The new orders index eased slightly to 60.4 from 61.5 in November. The prices paid subindex, in a sign of easing supply chain snags, slumped to 68.2 from 82.4. That marked the lowest prices paid index reading since November 2020 and was the largest MoM drop in the index since March 2020.
Market Reaction
The DXY seems to have slipped a tad after the headline ISM and JOLTs numbers missed, but also given the sharp decline in inflationary pressures as indicated by the large drop in the ISM prices paid index. It still trades in the 96.20s and slightly higher on the day.
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