FXstreet.com (Barcelona) - Economic activity has grown in the US's manufacturing sector in January at a fastest pace than in December while the overall economy posted its 75 consecutive growth, according to the latest Manufacturing ISM Report on Business.

In January, the ISM index increased 2.3 percentage points to 50.7 points, from revised 48.4 posted in December, revised up from the initially released 47.7 reading. The ISM index returns now to the levels of the past six months, an average of 50.2 on that period.

The production index bounced 6.6 points up, while the new orders declined somewhat to 49.5from 46.9 on the previous month.

The ISM data comes as a relief, according to Ian Shepherdson, Chief U.S. Economist at High Frequency Economics: After the horrible Philly Fed survey and the drop in the Chicago PMI this is something of a relief, though we very much doubt it means the ISM has bottomed out.

Shepherdson, nevertheless warns about some weakening ion the forthcoming months: Overall the survey is now in line with our model, based on year-ago movements in corporate bond yields, but we remain nervous that the tightening in credit conditions and the clear slowing in consumption will shortly feed into weaker activity.