US ISM manufacturing index dropped sharply from 59.3 to 54.1 in December, well below expectation of 58.4. The -5.2 pts decline is the largest one-month drop since 2008. Looking at the details, new orders tumbled -11 pts to 51.1, production dropped -6.3 to 54.3, employment dropped -2.2 to 56.2. ISM noted that “comments from the panel reflect continued expanding business strength, but at much lower levels.” Also, only 11 districts of out 18 reported growth in December.
