January 3, 2020
Economic data featured US December manufacturing ISM coming in below estimates at 47.2 vs consensus for 49 and November’s 48.1. This is the lowest ISM number since June 2009 and follows a slight downward revision to US Manufacturing PMI yesterday. The headline number is clearly a disappointment, but so were the new order and employment components. Both declined month-over-month in December with new orders down from 47.2 to 46.8 and employment from 46.6 to 45.1. And the prices paid component rose from 46.7 to 51.7. Several economists note a fairly heavy influence from Boeing issues during the month and investors might even give the data a pass given how ‘phase-one’ news came late in the month. But keep this report in mind as we head into CQ4 earnings season in two weeks.