The ISM Manufacturing index for December came in weaker at 55.5 vs 57.5. The high for 2014 was 59 (twice – see chart below). The low for the year came in at 51 (in January 2014 – weather impacted). The index is still comfortably above the 50 level but ends the year near the middle of the years range. The USDJPY fell on the news and trades back below the 100 bar MA on the 5 minute chart (blue line in the chart below). and is testing the London session lows at the 120.30 area (see chart below).
USDJPY has fallen after the weaker ISM report.
Looking at the major components, Prices Paid sticks out this month as it fell to 38.5 . This is down form 59.5 in September. The high for the year was at 60.5 in January (again weather impacted). The lower oil prices are flowing through the survey data and could keep the Fed quiet. Employment rose to 56.8 but New orders fell to 57.3, still high but the lowest level since May 2014.
Overall 7 of the components outlined fell, while just 2 advanced in the current month.
Below is a look at the trends in the manufacturing sector of the US according to the ISM.
Trends in the US ISM data
