Today the U.S. Manufacturing ISM report was published and the U.S. Manufacturing PMI growth rate rose again to 53.9% during December. The U.S. Manufacturing PMI – an index that presents the economic activity in the U.S. manufacturing sector, rose for the 29th consecutive month; the growth rate increased from 52.7% in November to 53.9% in December i.e. a 1.2 percent points increase. This means that the U.S. manufacturing sector is growing at a higher pace in December compared to November.
Among the factors that were examined in this survey: one of the sharpest increase was the production from 56.6% to 59.9% – an increase of 3.3 percent point; imports also grew by 5.0 percent points; employment also rose by 3.3 percent points to 55.1%; on the other hand, among the sectors that contracted were customers inventories – a decrease of 7.5 percent point to 42.5% and inventories – a drop of 1.2 percent point to 47.1.
According to Roache et. al (2008) it was suggested that the PMI Manufacturing ISM report has a negative relation with gold and silver prices, without controlling the effect of US dollar. Currently, it seems that this news might have an effect on gold and silver prices as they are traded sharply up. The PMI news also suppose to have a positive lagged relation with natural gas prices, i.e. all things being equal and when controlling for the U.S dollar, as the PMI Manufacturing ISM index tends to rise so do natural gas prices. Currently natural gas prices are moderately rising; other energy commodities prices such as crude oil prices are sharply increasing.
The U.S. stock market indexes are currently sharply up for the DOW, S&P500 and NASDAQ.
Current gold price, short term futures (February 2012 delivery) is traded at $ 1,604 per t oz. a $37.6 increase or 2.40%, as of 19:24*.
Current Nymex crude oil price, short term futures (February 2012 delivery) is traded sharply up by 4.24%, at $103.02 per barrel as of 19:27*.
Euros to USD is currently traded up at 1.3064 a 1.005% increase as of 19:39*.
(* GMT)
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