US: Expect an elevated reading of 57.7 for ISM manufacturing – Nomura

Analysts at Nomura expect an elevated reading of 57.7 for December’s ISM manufacturing topline index (Consensus: 58.2) of the US.

Key Quotes

“Incoming data on the manufacturing sector point to elevated momentum, which we expect will continue near term. Further, supply-chain disruptions caused by the recent hurricanes have mostly been resolved as indicated by declines in the supplier deliveries index, contributing much to the recent declines in the topline index. Thus, the recent declines do not portend a material deterioration in manufacturing activity. Consistent with strong incoming data on the manufacturing sector, the ISM indices for new orders and production both accelerated in November, indicating that current strength is likely to persist over the near term.”