Fiper | ISM Manufacturing PMI

The ISM Manufacturing Index determines the level of activity of purchasing managers in the manufacturing sector, and a reading above 50 indicates expansion. To get a reading of this indicator, purchasing managers determine the level of certain elements in the sector, including employment, production, new orders, resource allocation, and inventories.
The US ISM manufacturing PMI fell to 48.4 in December of 2022, slightly below expectations of 48.5, indicating a second month of contraction in factory activity as Americans shift spending away from goods to services. Excluding the decline in April 2020 at the height of the Covid pandemic, this reading was the lowest since February 2016. New orders (45.2 vs. 47.2), new export orders (46.2 vs. 48.4) fell further and production shifted into negative territory (48.5 vs. 51.5). On the other hand, employment rebounded (51.4 vs. 48.4), with many companies managing employee numbers through a combination of hiring freezes, staff attrition and layoffs. Inventories also grew faster (51.8 vs. 50.9) and price pressures eased (39.4, the lowest since April 2020). The monthly performance of supplier delivery (45.1 vs. 47.2) was the best since March 2009. Only two industries reported growth in December: primary metals; Petroleum and coal products

Outlook for today's statement and how it will affect the currency

Expectations for today's statement indicate the level of 48
In the event that the statement was issued and recorded a lower level than expectations, this negatively affects the currency
In the event that the statement was issued and recorded a level higher than expectations, this will positively affect the currency