The US ISM Manufacturing PMI scored 53.9 points. The employment component rose from 51.8 to 55.1 points. This indicates faster growth and is a positive sign for the Non-Farm Payrolls.
Early expectations stood on a rise to 53.3 points from 52.7 points initially reported for November. The New Orders component ticked up to 57.6 points, production rose to 59.9 and inventories are now contracting at a faster pace: the score is 47.1.
This is the 29th consecutive month of growth (a headline score higher than 50) according to the report.
Prices are decreasing at slower pace: the score rose from 45 to 47.5 points. All in all, this is a very good report. It’s only important to note that manufacturing is a small part of the US economy, and services is much bigger.
If the ISM Non-Manufacturing PMI follows the same path, we are up for an excellent Non-Farm Payrolls report.
EUR/USD remains in range. USD/JPY ticks down.
Also in the US, Construction Spending surprised and rose by 1.2%. A rise of 0.6% was expected after last month’s 0.2% drop. The original report for November stood on a rise of 0.8%.
Further reading: EUR/USD – Limited Gains on Limited HopeGet the 5 most predictable currency pairs