• Highest since 2011
  • Prior reading was 56.4
  • Employment 56.5 vs 53.2
  • New orders 63.6 vs 60.6 prior
  • Full text of the report

Great news for the US dollar and keeps the focus on the possibility of a December taper.

ISM manufacturing index Dec 2

ISM manufacturing index

A taper is still probably only a 15% probability but the ISM non-manufacturing index and non-farm payrolls later this week could increase that number significantly and make a January taper a significant risk.

Comments in the report:

  • “Outlook for the remainder of the year and into 2014 is trending positive.”
  • “Overall business climate is good. Business is steady.”
  • “Getting much busier toward the end of the year.”
  • “Sequestration and cutbacks in defense spending continue to impact business.”