🇺🇸Cable FX Macro Weekly Note: January ISM Mfg PMI

**As seen in Risk In The Week report 01/27/23, cablefxm.co.uk/reports

The December ISM Manufacturing PMI slipped to 48.4 from the prior 49.0 making its way further into contractionary readings, the Bloomberg survey median had seen the figure at 48.5. The prices paid index fell further to 39.4 from the prior 43.0, this was the longest decline streak since 1974-75. As of December, 8 out of 10 sub-indexes are printing below the 50.0 threshold, this compares to 3 out of 10 back in June.

While the headline fell to the lowest since May 2020, the employment index jumped to 51.4, the highest since August 2020. Supplier deliveries fell to the lowest since March 2009, prices paid fell to the lowest since April 2020. Analysts at Wells Fargo say that the contraction in equipment spending in this week’s GDP, alongside the ISM survey readings, point to evidence of a recession in the manufacturing sector. On growth, the desk said that the Q4 economic figures showed a distinctive easing in the pace of expansion, they note that is likely to continue into 2023.