US: Projected path for industrial production remains modest – Wells Fargo
By FXStreet FXStreet (Córdoba) – According to analysts from Wells Fargo, today’s ISM report shows an ongoing adjustment in the manufacturing sector, with no imminent signs of a rebound.
Key Quotes:
“U.S. manufacturing continues its adjustment to altered expectations of global growth and domestic energy opportunities. The ISM index came in at 48.2 in December with new orders and production below breakeven.”
“December’s overall ISM index at 48.2 reinforces the message that the manufacturing sector continues to work through the hit on energy and a more modest global economic outlook. The projected path for industrial production remains modest. For 2016 we expect industrial
production will grow 1 to 2 percentage points below the pace seen earlier in this expansion and closer to the slower pace of last year—there is no imminent rebound here.”
“Another signal of correction in the manufacturing sector is the continuation of new orders below 50 at 49.2 in December. Weakness in the new orders index reinforces the view that factory orders and capital spending will remain disappointing at this stage of the economic expansion.”
“Finally, prices paid declined further to 33.5 in December compared to 35.5 in November. Of the eighteen industries reporting, no industry reported an increase—weakness continues in commodity …read more
Source:: FX Street
