ISM Manufacturing PMI Provides Hope for NFP

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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 Hope

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.