Investing.com - Manufacturing activity in the U.S. contracted again in January, holding near levels not seen since July 2009, industry data showed on Monday.
In a report, the Institute for Supply Management said its index of purchasing managers inched up to 48.2 last month from a reading of 48.0 in December. Analysts had expected the manufacturing PMI to rise to 48.1 in January.
The New Orders Index registered 51.5, an increase of 2.7 points from the seasonally adjusted reading of 48.8 in December. The Production Index registered 50.2, 0.3 points higher than the seasonally adjusted December reading of 49.9.
The Employment Index registered 45.9, 2.1 points below the seasonally adjusted December reading of 48.0.
The Prices Index registered 33.5, the same reading as in December, indicating lower raw materials prices for the 15th consecutive month.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Comments from the panel indicate a mix ranging from strong to soft orders, as eight of our 18 industries report an increase in orders, and seven industries report a decrease in orders.
EUR/USD was trading at 1.0913 from around 1.0897 ahead of the release of the data, GBP/USD was at 1.4343 from 1.4329 earlier, while USD/JPY was at 120.71 from 120.88 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 99.03, compared to 99.12 ahead of the report.
Meanwhile, U.S. equity markets were down sharply after the open. The Dow 30 sank 1%, the S&P 500 tumbled 1%, while the Nasdaq Composite slumped 1%.
Elsewhere, in the commodities market, gold futures traded at $1,127.40 a troy ounce, compared to $1,126.40 ahead of the data, while crude oil traded at $31.93 a barrel from $32.19 earlier.