FXstreet.com (Barcelona) - Manufacturing activity has decreased in the US in September, for the first time in the last ten months, posting and the lowest level since the invasion of Iraq in April 03, according to the latest Manufacturing ISM report.
Manufacturing PMI decreased to 47.7 in December from 50.8 in November. This is the first time since January 2007 that manufacturing activity fails to grow.
New orders decreased to 45.7 from 52.6 in November, while the production index fell to 47.3 in December, from 51.9 in November, while the employment index increased slightly to 48.0 from 47.8 in November. Inventories contracted again, to 45.5 in December from 46.9 in November.
According to Ian Shepherdson, Chief U.S. Economist at High Frequency Economics, Ltd this weak report puts pressure on the Fed: Overall, this is a seriously weak report though the headline is still not quite at recession levels. But it is far too close for comfort and it reinforces our view that the Fed has a lot more easing to do.