U.S. Manufacturing data, released today by the Institute for Supply Management, showed that manufacturing activity contracted in January for the twelveth straight month. January’s ISM Report On Business index readings for economic activity were at 35.6 percent, an increase from December’s revised 32.9 percent but still in monthly contracting territory. A score above 50 is considered to be growth while a less than 50 score is considered to be contraction or negative growth in that sector. January’s score came in above economic forecasts which were expecting a 32.5 percent reading.
Details of the report showed that new orders for manufactured goods increased in January with a 10.1 percent gain over December while the prices index also gained by 11.0 for the month. New orders, despite the monthly increase, have now fallen for 14 straight months and the prices index has fallen for 4 straight months.
Manufacturing production saw an increase of 5.6 percent for the month while employment showed no change from December. Inventories fell by 2.1 percent while exports grew by 2.0 percent and imports fell for the month by 2.5 percent.
Norbert J. Ore, chair of the ISM Business Survey Committee, commented on the manufacturing industry in the report, “January marked 12 months of contraction in the manufacturing sector. However, the rate of decline as measured by the PMI was slower than experienced in December. The January New Orders Index is at 33.2 percent, up from the seasonally adjusted 23.1 percent recorded in December. While this is a significant month-over-month improvement, it is still a sign of continuing weakness in the sector. Comments from our respondents indicate that it will take a recovery in automobiles and housing for the manufacturing sector to once again prosper. On a positive note, the Prices Index continues to indicate significant deflation in the prices that manufacturers have to pay for their inputs, and this should ultimately be good for the consumer.”
US Dollar mixed in Forex Trading.
The U.S. dollar has been mixed in forex trading today against the major currencies. The dollar has gained against the British pound, Australian dollar, Canadian dollar and New Zealand dollar while falling versus the euro, Japanese yen and Swiss franc.
The euro has gained versus the dollar from today’s 1.2721 opening to trading at approximately 1.2819 at the end of the US trading session at 5:12pm EST. The British pound has declined today versus the dollar from 1.4380 to trading at 1.4252 dollars per pound. The dollar has fallen against the Japanese yen today as the USD/JPY has declined from its 89.63 opening rate to trading at 89.35.
The dollar has advanced against the Canadian dollar after opening at 1.2328 earlier today to trading later at 1.2436. Against the Swiss franc, the USD has lost ground from the 1.1649 opening to trading at 1.1622.
The New Zealand and Australian dollars are both little changed against the US dollar from their opening exchange rates. The NZD/USD currently trades at 0.5029 after opening at 0.5032 while the AUD/USD trades at 0.6310 after opening today at 0.6319.
USD/CAD Chart – The USD gaining today against the Canadian Dollar in Forex Trading.
