US December PMI Data Prints Near Expectations
US Services and ManufacturingPMI Talking Points:
- This morning brought the release of US services and manufacturing PMI, printing near expectations.
- December services PMI comes in following a few poor months of data that began to show signs that slowing manufacturing PMI was beginning to spill over into services.
- Likewise, US manufacturing PMI is coming off lows set in late Q2 and Q3 where prints came in just above the 50 level for four periods in a row.
December Services and Manufacturing PMI Prints Near Expectations
This morning brought the release of US services and manufacturing PMI data out of the United States for the month of December. US manufacturing PMI printed at 52.5, falling short of the expectations of 52.6. US services PMI printed at 52.2 versus the expectation of 52.0
Chart Prepared by Austin Sealey; US December Manufacturing PMI
US manufacturing PMI has been lowering since late 2018 as signs of a global slowdown first began to show in the manufacturing sector, but recently, markets have turned their eyes to services PMI as worries grew that a slowdown was beginning to spill over into another sector.
These prints come in following the first month of strong data for both manufacturing and services, and as services PMI prints at an increase for the second month in a row, there are signs that the US services sector may no longer be under fire.
Chart Prepared by Austin Sealey; US December Services PMI
As the US is coming off of a year of aggressive expansionary policy, market turn they eyes to these leading indicators as a sign of what may be to come with future rate cuts. However, while this morning’s data takes away some of the concern brought on in past few months, it has done little for the US dollar, as it remains largely unchanged since the release. The same cannot be said for the broader market, as the S&P gapped up this morning to test 3,190.
Chart prepared by Austin Sealey; DXY on TradingView
--Written by Austin Sealey, Market Analyst for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.