US: ISM Manufacturing PMI declines to 48.4 in December vs. 48.5 expected
- US ISM Manufacturing PMI declined modestly in December.
- US Dollar Index recovers from daily lows, holds above 104.00.
Business activity in the US manufacturing sector contracted for the second straight month in December with ISM's Manufacturing PMI declining to 48.4 from 49 in November. This reading came in slightly below the market expectation of 48.5.
Further details of the publication revealed that the Prices Paid Index slumped to 39.4 from 43 and the Employment Index improved to 51.4 from 48.4.
Commenting on the survey's findings, "manufacturing contracted again in December after expanding for 29 straight months," noted Timothy R. Fiore, Chair of the Institute for Supply Management.
"Panelists' companies continue to judiciously manage hiring. The month-over-month performance of supplier deliveries was the best since March 2009," Fiore added. Managing head counts and total supply chain inventories remain primary goals as the sector closes the year. More attention will be paid to demand as we enter the first quarter to shore up order books for the next six to 12 months."
Market reaction
The US Dollar Index edged higher with the initial reaction and was last seen losing 0.45% on the day at 104.22.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
