Investing.com - Manufacturing activity in the Chicago-area fell more than expected in December, dropping back from a previous reading that had been the highest since January 2015 and dampening optimism over the U.S. economic outlook, industry data showed on Friday.
In a report, the Institute for Supply Management (ISM) said its Chicago purchasing managers’ index decreased by 3.0 points to a seasonally adjusted 54.6 this month from a reading of 57.6 in November. Analysts had expected the index to drop 0.6 points to 57.0 in December.
On the index, a number above 50.0 indicates an expansion, while below indicates contraction.
MNI Indicators, which helps elaborate the report, noted that three of the five components included in the barometer decreased, while employment held firm and supplier deliveries increased slightly.
New orders led the decline, falling 6.7 points to 56.5.
Despite the decline in the general index, MNI Indicators pointed out that the reading for the fourth quarter hit a two-year high.
“Most firms are upbeat going into 2017 and believe new better things are to come under the new administration,” MNI Indicators economist Jamie Satchi said, referring to Donald Trump’s swearing in as President that will take place on January 20.
After the report, EUR/USD was trading at 1.0544 from around 1.0529 ahead of the release of the data, GBP/USD was at 1.2377 from 1.2357 earlier, while USD/JPY was at 116.72 from 116.86 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 102.16 from 102.30 previously.
Meanwhile, U.S. stock markets were trading flat after the open. The Dow 30 inched down 0.05%, the S&P 500 dropped 0.02%, while the Nasdaq Composite fell 0.15%.
Elsewhere, in the commodities market, gold futures traded at $1,159.95 a troy ounce, compared to $1,160.85 ahead of the data, while crude oil traded at $53.57 a barrel from $53.53 earlier.
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