The ISM Manufacturing Purchasing Managers’ Index for December is set to show ongoing growth in the industrial sector. The publican and its employment component serve as hints toward Friday’s Nonfarm Payrolls. According to FXStreet’s Analyst Joseph Trevisani, the US dollar could receive a boost in the first major statistic of the New Year.
Key quotes
“Judging from the manufacturing sector where the Purchasing Managers’ Index from the Institute for Supply Management (ISM) has been in expansion for six months and is expected to add a seventh in December, the answer is yes. The run from June has been the best half-year since the first six months of 2019.”
“The New Orders Index jumped from 31.8 in May to 56.4 in June and has not been below 60 since then. The forecast of 74.8 for December is astonishing. If accurate it would be the second-highest score for expected business in the 70 odd years of the survey.”
“Employment has lagged the other indexes throughout the recovery. It only reached the 50 expansion-contraction mark in October at 53.2 after 14 straight negative months. Then dropped back to 48.4 in November. It is projected to rise to 50.7 in December.”
“Manufacturing executives are looking and planning for the end of the pandemic sometime in the spring or early summer. Despite the gloom in the labor market that expectation should continue to keep the factory outlook optimistic.”
“A strong December manufacturing ISM, ignoring the current COVID-19 diagnoses, could be just the tonic the greenback needs.”
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