US: Markit Manufacturing PMI climbs to 57.1 in December, highest since September 2014

• Markit Manufacturing PMI in US rose to multi-year high in December.
• US Dollar Index stays in the negative territory below 90.00.

The economic activity in the US' manufacturing sector expanded at its strongest pace since September 2014 in December with the IHS Markit's Manufacturing PMI climbing to 57.1 from 56.7 in November. This reading came in better than the flash estimate of 56.5 as well.

Further details of the publication showed that the Final Output Index edged lower to 58.3 from 59.2 and the Final Output Prices Index rose to its highest level since May 2011 at 58.6.

Commenting on the data, "manufacturers reported a strong end to 2020, with production and order books continuing to grow, albeit with the rates of expansion slowing as a result of rising virus case numbers and related restrictions," said Chris Williamson, Chief Business Economist at IHS Markit.

"Producers of machinery and equipment reported sustained strong demand, suggesting companies are increasing their investment spending," Williamson added.

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen losing 0.38% on a daily basis at 89.60.