US: ISM Manufacturing PMI rebounds to 50.9 in January vs. 48.5 expected
- ISM Manufacturing PMI rises above 50 threshold unexpectedly in January.
- US Dollar Index extends rebound toward 98 handle on upbeat data.
The Institue for Supply Management's (ISM) Manufacturing PMI in January rose to 50.9, the highest print since July, from 47.8 to reveal that the sector has returned to expansion territory. This reading came in better than the market expectation of 48.5 as well.
Further details of the report showed that the New Orders Index improved to its best level since May at 52 and the Prices Paid Index rose to a fresh 10-month high of 53.3.
Commenting on the data, “global trade remains a cross-industry issue, but many respondents were positive for the first time in several months," noted Timothy R. Fiore, Chair of the Institute for Supply Management Manufacturing Business Survey Committee. "Overall, sentiment this month is moderately positive regarding near-term growth,”
USD continues to gather strength
With the initial market reaction, the US Dollar Index, which tracks the USD's performance against a basket of six major currencies, stretched higher and was last seen adding 0.5% on the day at 97.85.