US: ISM Manufacturing Index surged to its highest level since July – TD Securities

Analysts at TD Securities express their afterthoughts on the upbeat US ISM Manufacturing PMI report released on Monday.

Key Quotes:

“The ISM manufacturing index surged above participants' expectations, rising to its highest level since July at 50.9 for January (TD 50.0; consensus 48.5), following 47.8.

The gain was led by a whopping 9.5pt jump in the production component to 54.3 as well as a notable 4.4pt increase in new orders to 52.0.

The December trade agreement between the US and China likely played a key role behind improving sentiment.

We note, however, that coronavirus fears might affect the survey as soon as in February, as a possible growth slowdown in China is likely to impact manufacturing activities.”