The ISM purchasing managers’ index, which measures the state of US industry, was better than expected.
November’s ISM index rose to 48.4 points from 46.5 points in October. Economists contacted by Bloomberg had expected a reading of 47.5 points on average.
Readings below fifty points mean shrinking production. However, production shrank less than expected. The index was especially boosted by the increase in new orders to an expansive level.
“Demand will still remain weak, but it will moderate. Production continued to decline, but orders remained at an encouraging level,” Timothy Fiore, ISM’s director of survey research, said in the release.
A similar message was also provided by the final reading of the industrial purchasing managers’ index of another data producer, S&P Global, which rose to 49.7 points from 48.8 points in advance, when the expectation was .
ISM’s important Prices Paid index fell to 50.4 points from 54.8 points the previous month. Bloomberg economists were expecting a reading of 55.2 points. The reading means that the increase in material costs is about to subside.
The market effects of the statistic have been moderate so far