FXStreet (Mumbai) – The Institute of Supply Management (ISM) data released today showed the manufacturing activity contracted most since 2009 in November.
The Institute for Supply Management’s index dropped to 48.6, the lowest level since June 2009, from 50.1 in October. The report states the manufacturing activity is in recession ahead of the much anticipated Fed rate hike.
Manufacturing activity, which account for almost 12% of the economy, is battling weak global demand and appreciating dollar.
The only bright spot in the report was the employment measure, which increased to 51.3 in November from 47.6. This may keep the rate hike bets intact since the Fed is more focused on the labor market tightening.
Key Points
Employment index 51.3 nov vs 47.6 oct
Prices paid index 35.5 nov vs 39.0 oct (nsa)
New orders index 48.9 nov vs 52.9 oct
Production index 49.2 nov vs 52.9 oct
Supplier delivery index 50.6 nov vs 50.4 oct
(Market News Provided by FXstreet)