US: Markit Manufacturing PMI edges lower to 56.5 in December vs. 55.7 expected

• Markit Manufacturing PMI in US declined modestly in December. 
• Business activity in service sector expanded at a softer pace than it did in November.
• US Dollar Index stays in the negative territory around 90.30.

The IHS Markit’s Manufacturing Purchasing Managers’ Index (PMI) for the US edged lower to 56.5 in December from 56.7 in November to show that the economic activity in the manufacturing sector continued to expand at a robust pace. This reading came in better than the market expectation 55.7.

On a negative note, the Services PMI fell to 55.3 from 58.4 in November and missed analysts’ estimate of 55.9.

Commenting on the report, “businesses reported that the US economy lost growth momentum in December, though encouragingly continued to expand at a solid pace,” said  Chris Williamson, Chief Business Economist at IHS Markit. “The survey data add to the likelihood of the economy having continued to expand in the fourth quarter, building on the recovery seen in the third quarter.”

Market reaction

The greenback’s reaction to this report was largely muted. As of writing, the US Dollar Index was down 0.25% on the day at 90.25.