Manufacturing PMI misses analyst expectations, falls to 47.9
The final reading of the manufacturing PMI for December was released by S&P Global on January 2. It showed that the manufacturing sector contracted in December after growing in November. The report noted that the rising prices of raw materials and products led to a further deterioration in the manufacturing sector’s performance. Supply constraints also […]
- The PMI for the manufacturing sector fell from 49.4 in November to 47.9 in December.
- The manufacturing sector remains under pressure as customer demand is weak.
- For many goods, supply is outstripping demand.
The final reading of the manufacturing PMI for December was released by S&P Global on January 2. It showed that the manufacturing sector contracted in December after growing in November.
The report noted that the rising prices of raw materials and products led to a further deterioration in the manufacturing sector’s performance. Supply constraints also indicated a downside risk to the sector.
According to S&P Global, the manufacturing sector’s decline accelerated in December due to the decline in new orders. It noted that this would lead to a negative contribution to the country’s fourth-quarter economic growth.
The U.S. Dollar Index settled near 102.05 as traders reacted to the report. Treasury yields are moving higher today, providing significant support for the American currency.
Gold continued its attempts to settle above the $2070 level. Gold is moving higher despite a stronger dollar and rising Treasury yields. Demand for safe-haven assets increased amid rising tensions in the Red Sea, which was bullish for gold markets.
SP500 remains under pressure after the release of the disappointing report. Currently, the SP500 is trading near the 4740 level. Rising Treasury yields and profit taking after the recent rally are acting as bearish catalysts for the SP500.
