ISM PMI shows continued contraction in the manufacturing sector

By FXStreet FXStreet (Mumbai) – The ISM PMI released today showed a contraction in the manufacturing sector for the third straight month in January. The index measuring the national factory activity increased to 48.2 from 48.0 seen in December. However, the good news is that both production and new orders has managed to move past the 50 mark threshold. The new orders index rose to 51.5, the highest since last August, from 48.8. The prices paid index however remained unchanged at 33.5.

Employment in the sector dropped to a six-and-a-half year low raising the fear that overall employment rate has probably dropped in the month of January ahead of the jobs report due this Friday. The index mesuring employment fell to 45.9 from 48.0,marking the lowest reading since June 2009. Economists had expected the readng to come in at 48. It is being feared that the overall payrolls might not have increased 190k in January as is being broadly estimated.

All indicators assessing manufacturing growth in the US released in in the previous months have revealed a slowdown in this sector. The manufacturing sector in has suffered in the recent times on account of slowing global growth as well as the strong …read more

Source:: FX Street