by Calculated Risk on 1/02/2013 09:05:00 AM

Scheduling note: Both the FOMC minutes and the MBA Purchase index will be released on Thursday.

From MarkIt: PMI at seven-month high in December, signalling solid expansion of manufacturing sector

The final Markit U.S. Manufacturing Purchasing Managers’ Index™ (PMI™) was 54.0 in December, down slightly from the flash estimate of 54.2, and signalled a further expansion of the U.S. manufacturing sector. Moreover, up from 52.8 in November, the headline PMI indicated the strongest rate of growth since May.
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One-in-five companies reported an increase in new orders, with the overall rate of growth the fastest since April. Moreover, new export orders increased for the second month running and at the strongest pace since March.
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“Firms are also taking on more staff, suggesting that the underlying improvement in demand pushed any worries about the ‘fiscal cliff’ to backs of manufacturers’ minds in the closing weeks of the year. [said Chris Williamson, Chief Economist at Markit]

“With recent indications that growth is also picking up in other key economies around the world, notably in emerging markets such as China and Brazil, and that the Eurozone’s economic crisis is easing, U.S. companies should benefit as stronger demand lifts exports in early 2013. While economic growth may disappoint in the fourth quarter compared to the 3.1% rate of expansion seen in the third quarter, the recent run of positive PMI surveys towards the end of 2012 suggests that prospects have begun to look a little brighter for the new year.”

The ISM PMI will be released at 10 AM today.