1 Dec 2014
US ISM manufacturing index continues to point to strong growth – ING
FXStreet (Barcelona) - James Knightley of ING, shares the US ISM release, and notes that it continues to point towards strong growth in spite of registering a marginal fall.
Key Quotes
“The US ISM manufacturing index has fallen very marginally in November, to stand at 58.7 versus 59.0 in October. The market had been looking for a slightly weaker 58.0 outcome.”
“The details show that production was down four tenths of a point to 64.4, which is still very strong given 50 is the break-even level. New orders rose two tenths of a point to 66.0, suggesting full order books that will keep manufacturing production growing robustly in the months ahead – note that the backlog of orders rose to its highest level since April.”
“Encouragingly, export orders bounced back nicely while the prices paid component plunged to 44.5 from 53.5 reflecting lower oil prices. The one slightly disappointing bit of news was that the employment component fell to 54.9 from 55.5, but it is still consistent with an increase in employment in the sector.”
“Given the broad strength in the report it suggests that the manufacturing sector has very strong momentum with the current level of the ISM index at levels historically consistent with GDP growth in excess of 4%.”
Key Quotes
“The US ISM manufacturing index has fallen very marginally in November, to stand at 58.7 versus 59.0 in October. The market had been looking for a slightly weaker 58.0 outcome.”
“The details show that production was down four tenths of a point to 64.4, which is still very strong given 50 is the break-even level. New orders rose two tenths of a point to 66.0, suggesting full order books that will keep manufacturing production growing robustly in the months ahead – note that the backlog of orders rose to its highest level since April.”
“Encouragingly, export orders bounced back nicely while the prices paid component plunged to 44.5 from 53.5 reflecting lower oil prices. The one slightly disappointing bit of news was that the employment component fell to 54.9 from 55.5, but it is still consistent with an increase in employment in the sector.”
“Given the broad strength in the report it suggests that the manufacturing sector has very strong momentum with the current level of the ISM index at levels historically consistent with GDP growth in excess of 4%.”