US manufacturing cooled down in December amid some cooling in demand for goods, but supply chain constraints are starting to ease off.
DXY down -0.17%, EUR USD up +0.20%
The Institute for Supply Management (ISM) with the main index falling to 58.7 in December from 61.1 in November. That figure was the lowest since January and followed by 61.1 in November.
The ISM Survey’s measure of supplier deliveries dropped to 64.9 from 72.2 in November. A figure above 50% signals slower deliveries to factories.
The supply of raw materials has tightened as global economies bounce back from the COVID-19 pandemic.
The massive signals of improvement in supply chains imply that inflation at the factory gate might soon start subsidizing.
The survey’s measure of prices paid by manufacturers plunged to 68.2 last month, the lowest level since November 2020, from 82.4 in November.