U.S. ISM manufacturing PMI falls to lowest since 2009 in December

U.S. ISM manufacturing PMI falls to lowest since 2009 in December

Investing.com  | Jan 04, 2016 15:07

U.S. ISM manufacturing PMI falls to lowest since 2009

Investing.com - Manufacturing activity in the U.S. contracted at the fastest pace since July 2009 in December, dampening optimism over the strength of the economy and adding to uncertainty as to how fast the Federal Reserve will raise interest rates next year, industry data showed on Monday.

In a report, the Institute for Supply Management said its index of purchasing managers fell to 48.2 last month from a reading of 48.6 in November. Analysts had expected the manufacturing PMI to inch up to 49.0 in December.

The New Orders Index registered 49.2, an increase of 0.3 points from the reading of 48.9 in November. The Production Index registered 49.8, 0.6 points higher than the November reading of 49.2.

The Employment Index registered 48.1, 3.2 points below the November reading of 51.3. The Prices Index registered 33.5, a decrease of 2.0 points from the November reading of 35.5.

On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.

EUR/USD was trading at 1.0844 from around 1.0837 ahead of the release of the data, GBP/USD was at 1.4726 from 1.4721 earlier, while USD/JPY was at 119.03 from 119.10 earlier.

The US dollar index, which tracks the greenback against a basket of six major rivals, was at 98.77, compared to 98.83 ahead of the report.

Meanwhile, U.S. equity markets were down sharply after the open. The Dow 30 sank 2.1%, the S&P 500 tumbled 2.1%, while the Nasdaq Composite plunged 2.4%.

Elsewhere, in the commodities market, gold futures traded at $1,081.50 a troy ounce, compared to $1,079.90 ahead of the data, while crude oil traded at $38.25 a barrel from $38.24 earlier.

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