US ISM Manufacturing PMI improves to 49.3 in December vs. 48.4 expected

• The business activity in the US manufacturing sector contracted at a softer pace than expected in December.
• The US Dollar Index stays in negative territory near 109.00.

The business activity in the US manufacturing sector continued to contract, albeit at a softening pace in December, with the ISM Manufacturing PMI rising to 49.3 from 48.4 in November. This reading came in better than the market expectation of 48.4.

The Employment Index of the PMI survey edged lower to 45.3 from 48.1 in the same period and the Prices Paid Index climbed to 52.5 from 50.3, highlighting stronger price pressures. Finally, the New Orders Index improved to 52.5 from 50.4.