US factory activity facing off steepest headwinds in more than a decade


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US factory activity facing off steepest headwinds in more than a decade

December Data from Institute of Supply Management (ISM) for US manufacturing activity revealed on Friday, the 3rd of January 2020, had portrayed another tempestuous outlook for the US factory activity, accountable for roughly a fifth of the United States’ entire economic activity, suggesting a steep uphill battle ahead amid a sluggish global demand.

On top of that, according to Friday’s (January 3rd) ISM report for US factory activity, the US manufacturing sector, which had already been in a recession, had been facing off its steepest slump in more than a decade in December 2019, as a drag on Sino-US trade war had been tormenting factory output, employment alongside orders, nonetheless, analysts suggest a “Phase One” Sino-US trade deal due to be signed off on January 15th, could keep a lid on further downside momentum.

Besides, Friday’s (January 3rd) ISM (Institute of Supply Management), had reported its index for national factory activity dropped to a reading of 47.2 on December, down from a figure of 48.1 scored on November 2018, remarking the index’s lowest reading since mid-2009, while ISM readings for both factory employment alongside new orders had tumbled to a multi-year low, offsetting expectation of a pause on further drowning in to a recession, as referring to a gauge of geopolitical trade tensions, the Chair of ISM’s Manufacturing Business Survey Committee, Timothy Fiore said in a statement following reveal of Friday’s (January 3rd) ISM national factory activity data, “Global trade remains the most significant cross-industry issue, but there are signs that several industry sectors will improve as a result of the Phase 1 trade agreement. ”