The United States witnessed a steep rise in manufacturing activity. It rose more than what was anticipated during January, peaking the highest in the duration of about two years. According to Institute for Supply Management, its manufacturing index went up to 56.0 from 54.5 reading in December. The figure represents its peak level from December 2014. Analysts had earlier forecast a much smaller increase to 55.0.
Changes in US dollar
The US Dollar Index, was at the 99.67 level. Earlier it was 99.49. The index tracks the American currency against a basket comprising six other important currencies.
The index of prices paid went up to 69.0 during the first month of the year from 65.5 in December 2016. This can also be compared to the expected increase to about 66.0. This rise was the 11th consecutive one in raw materials' prices. According to Bradley Holcomb, the chairperson of the ISM, the Production, PMI and New Orders indexes have all registered their steepest levels right from November 2014. The panel has mostly positive comments when it comes to business conditions as well as demand levels.
Indicators and reports
If the reading of manufacturing activity is above 50.0, then it is indicative of an expansion in manufacturing sector. Any reading below that number indicates a contraction. The survey made by ISM indicates that the economy overall had enjoyed growth for 92nd consecutive month. There was also a rise in new orders index. It went up to reach 60.4 from the earlier 60.3 in December.
The report was published at the same time with December's construction spending. The value of the US dollar went up after that. The EUR/USD traded at 1.0741. This was 1.0801 ahead of the data release. The GBP/USD changed from 1.2648 to 1.2640. The USD/JPY went up from 113.24 to 113.84. Stock markets in America traded higher after they opened. There was a gain of 0.30 percent or 60 points in the Dow 30. These was a rise of 0.17 percent or four points by Standard & Poor 500. The Nasdaq Composite also went up by 0.43 percent or 24 points.
Other than these markets, like in commodities markets, gold futures changed hands at about $1,213.45 per troy ounce. This can be compared to the $1,213.35 published ahead of the data. The crude oil futures, however, continued to be unchanged at about $53.11.