Investing.com - Manufacturing activity in the U.S. unexpectedly strengthened in December, boosting optimism over the American econocmy, according to an industry report released on Wednesday.
The Institute for Supply Management (ISM) said its index of manufacturing activity increased to 59.7 last month from November’s reading of 58.2.
Analysts had forecast the index to drop to 58.1.
A reading above 50.0 indicates expansion in the manufacturing sector, below indicates contraction.
Furthermore, the ISM indicated that the survey suggested that the overall economy had grown for the 103rd consecutive month.
The new orders index rose to 69.4 in December from 64.0 a month earlier.
The employment index fell to 57.0 last month from the prior 59.7, missing forecasts for a gain to 59.0.
The prices paid index unexpectedly increased to 69.0 in December, from the previous reading of 65.5. Economists had forecast the reading to drop to 64.8.
“Comments from the panel reflect expanding business conditions, with new orders and production leading gains; employment expanding at a slower rate; order backlogs expanding at a faster rate; and export orders and imports continuing to grow in December,” the ISM noted.
After the report, which was published simultaneously with construction spending for November, EUR/USD was trading at 1.2010 from around 1.2019 ahead of the release of the data, GBP/USD was at 1.3520 from 1.3531 earlier, while USD/JPY was at 112.33 from 112.21 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 91.88, compared to 91.81 ahead of the report.
Meanwhile, U.S. stock markets were trading higher after the open. The Dow 30 gained 60 points, or 0.24%, the S&P 500 rose 10 points, or 0.36%, while the Nasdaq Composite traded up 40 points, or 0.57%.
Elsewhere, in the commodities market, gold futures traded at $1,317.50 a troy ounce, compared to $1,319.30 ahead of the data, while crude oil changed hands at $61.02 compared to $61.01 earlier.