On Monday, the 3rd of February 2020, data released from the ISM (Institute of Supply Management) had eased concerns over a recessed US manufacturing activity, while after falling for five straight months in a row, US factory activity posted a sharp rebound last month, offering a slightly wavering light to a protracted slump in US business investments.
Nonetheless, according to ISM’s (Institute of Supply Management) Monday (February 3rd) data, US construction spending fell on January. However, following reveal of an upbeat US factory activity data on Monday (February 3rd), several analysts were quoted saying an unprecedented upsurge in US goods’ orders had prodded the rebound.
According to ISM’s Monday’s (February 3rd) US factory activity data, after harbouring in to a recession zone for more than five months, US factory activity index had surged to 50.9 in January compared to a December reading of 47.8, the index’s highest figure since July last year, while a below-50 reading indicates a recessed economy and an above-50 reading remarks an expansion.
Despite Monday’s (February 3rd) robust boost in US factory activity data, analysts said a protracted trade war with China had battered investors’ confidence significantly, while a drag on Boeing Co.’s 737 MAX production line halt alongside a spreading coronavirus epidemic would likely to offset January’s gains over the coming months.