Investing.com - Manufacturing activity in the U.S. expanded at a slower rate than expected in January, dampening optimism over the health of the economy, industry data showed on Monday.
In a report, the Institute for Supply Management said its index of purchasing managers dropped to 51.3 last month from a reading of 57.0 in December. Analysts had expected the manufacturing PMI to ease down to 56.4 in January.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The New Orders Index registered 51.2, a significant decrease of 13.2 points from December''s seasonally adjusted reading of 64.4. The Production Index registered 54.8, a decrease of 6.9 points compared to December''s seasonally adjusted reading of 61.7.
The Employment Index registered 52.3, which is 3.5 points lower than the seasonally adjusted 55.8 percent reported in December
Following the release of the data, the U.S. dollar fell sharply against the euro, with EUR/USD rising 0.24% to trade at 1.3521, compared to 1.3486 ahead of the data.
Meanwhile, U.S. equity markets extended losses after the open. The Dow Jones Industrial Average dipped 0.6%, the S&P 500 index fell 0.6%, while the Nasdaq Composite index dropped 0.7%.
Please LIKE our Facebook page - it makes us stronger: