Chicago PMI rises further in December, manufacturing activity stays strong in region

The Chicago PMI rose in the month of December. The index rose from November’s 63.9 to 67.6, considerably stronger than consensus expectations of 62. The rise in December more than countered the losses in the survey during the previous month and implies rapid activity in the region, noted Barclays in a research report.

Production and new orders stimulated the overall index, while employment conditions weakened slightly. The production index rose to 77.7, while the new orders index rose to 72.7. The employment index fell to 55.3 from 57.1; however, it stays strongly in expansion territory and is indicative of firms continuing to hire. The employment index has been falling behind in other aspects of the survey such as production and new orders seen since the fourth quarter of 2016, but nevertheless at current levels it is in the higher end of its post crisis range.

“We view today’s report as suggesting that manufacturing sentiment and activity within the region remain solid and firmly in expansionary territory”, added Barclays.

At 20:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was bearish at -91.2071. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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