SPX

Composite PMI Exceeds Analyst Expectations

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Key Insights

  • Manufacturing PMI decreased from 49.4 in November to 48.2 in December. 
  • Services PMI increased from 50.8 to 51.3.
  • Composite PMI grew from 50.7 to 51.0.

On December 15, S&P Global released PMI reports for December. Manufacturing PMI declined from 49.4 in November to 48.2 in December, compared to analyst consensus of 49.3.

Services PMI improved from 50.8 in November to 51.3 in December, compared to analyst consensus of 50.6. Composite PMI increased from 50.7 to 51.0.

S&P Global commented: “Looser financial conditions have helped boost demand, business activity and employment in the service sector […] Manufacturing meanwhile remains a drag on the economy, with an increased rate of order book decline prompting factories to reduce production […]”

Today, traders also had a chance to take a look at Industrial Production report for November. The report indicated that Industrial Production increased by 0.2% on a month-over-month basis, compared to analyst consensus of +0.3%.

U.S. Dollar Index settled near the 102.40 level after the release of PMI reports. U.S. Dollar Index has recently moved away from multi-month lows but it looks that this move was mostly driven by profit-taking, although the better-than-expected Composite PMI may provide some support to the American currency.

Gold pulls back as traders take some profits off the table after the recent move. Traders are focused on U.S. dollar’s rebound, which is bearish for precious metals.

SP500 is losing some ground as traders react to PMI data. Currently, SP500 is trying to settle below the 4720 level.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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