US December ISM manufacturing PMI 47.4 vs 47.1 expected

<ul><li><a href="https://www.forexlive.com/news/us-november-ism-manufacturing-pmi-467-vs-476-expected-20231201/" target="_blank" rel="follow">Prior </a>report 46.7</li><li>Prices paid 45.2 vs 49.9 prior</li><li>Employment 48.1 vs 45.8 prior</li><li>New orders 47.1 vs 48.3 prior</li><li>Inventories 44.3 vs 44.8 prior</li><li>Production 50.3 vs 48.5 prior</li></ul><p>This is a nice 'soft landing' report as the prices paid number sinks after a rise last month.</p><p>Comments in the report:</p><ul><li>Anticipation of the U.S. Federal Reserve holding off on
interest-rate changes will encourage more companies to spend on capital
investments again. As budgets get approval after the start of the
calendar year, this should help drive investment and increase
manufacturing activity once again.” [Computer &amp; Electronic Products]</li><li>“Overall, order intake has picked up over the last quarter and a
backlog of projects is beginning to accumulate.” [Chemical Products]</li><li>“Demand is up across the board. We are starting to see back orders grow again.” [Transportation Equipment]</li><li>“Commodity costs are decreasing. Supply is readily available, and
customers are still ordering to last year's volumes.” [Food, Beverage
&amp; Tobacco Products]</li><li>“Business is slowing. Finished goods inventories are growing.” [Machinery]</li><li>“We are forecasting a somewhat strong year for 2024. We're currently
mildly optimistic for how next year will play out.” [Fabricated Metal
Products]</li><li>“We are seeing stronger demand from our American Automotive OEM
customers now that the United Auto Workers (UAW) strike has been
resolved. Looking at a very strong first quarter of 2024.” [Primary
Metals]</li><li>“Higher financing costs have diminished demand for residential
investment. Customers are delaying a portion of their plans until
borrowing costs are reduced. We are impacted with reduced new orders,
diminished backlog of orders and uncertain short-term demand for
products and services.” [Wood Products]</li><li>“Finishing the year similar to 2022; however, 2023 was more erratic.
Working to restore inventory position to ensure we have appropriate
safety stock.” [Electrical Equipment, Appliances &amp; Components]</li><li>“Business conditions are good; sales and production are tracking in accordance with forecasts.” [Miscellaneous Manufacturing]</li></ul><p>The comments in the ISM report are generally upbeat.</p>

This article was written by Adam Button at www.forexlive.com.