- December Manufacturing PMI reading fell short of market expectation.
- Upbeat Services PMI figure helps greenback stage modest recovery.
The business activity in the US’ manufacturing sector is expected to expand at a moderate pace in December, the data published by the IHS Markit showed on Monday.
The Manufacturing PMI ticked down to 52.5 in December’s preliminary reading from 52.6 in November and came in below the market expectation of 52.5. Further details of the publication showed that the Services PMI improved to 52.2 from 51.6 to surpass analysts’ estimate of 52.
With the initial market reaction, the US Dollar Index pulled away from its session lows but remains in the negative territory near the 97 handle.
Commenting on the data, “the surveys bring welcome signs of the economy continuing to regain growth momentum as 2019 draws to a close, with the outlook also brightening to fuel hopes of a strong start to 2020,” said Chris Williamson, Chief Business Economist at IHS Markit. “Business activity, order book and jobs growth all accelerated to five-month highs in December, buoyed by rising domestic sales and further signs of renewed life in export orders.”
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