Weaker external demand hits U.S. manufacturing PMI

U.S. manufacturing PMI disappointed in November as it contracted to 48.6 from 50.1 in previous month. The index is expected remain above 50 as various regional surveys found improvement in supplier deliveries and employment during the month. On the other hand, the production and new orders contracted sharply to 48.9 from 52.9. 

The non-manufacturing sectors, which are highly driven by the domestic demand, are performing well. On the other hand, the manufacturing MPI more exposed to global economy is affected by the fall in external demand especially slowdown in China and other Emerging economies.

"Today's numbers are unlikely to change expectations for a first rate hike from the Fed in a few weeks. The mixed picture of the state of the global economy probably only matters if it is seen as a threat to US financial stability as it may have been the case in September", says Nordea Bank.