ISM manufacturing index unexpectedly ticks up in November

Growth in the US manufacturing sector unexpectedly picked up in November, according to the Institute for Supply Management.

The ISM's headline manufacturing index rose to 59.3 from 57.7 in October, beating expectations for a drop to 57.5 and comfortably above the 50.0 mark that separates contraction from expansion.

The new orders index printed at 62.1 in November from 57.4 the month before, while the production index came in at 60.6 from 59.9. The employment index increased to 58.4 last month from 56.8 in October and the prices index fell to 60.7 from October's reading of 71.6.

Capital Economics said the rebound mostly reflects the strength of domestic demand and provides some support to its forecast for GDP to expand by 2.7% annualised in the fourth quarter.

Senior US economist Michael Pearce said: "Further ahead, however, we expect a combination of a stronger dollar, weaker global backdrop and slowing domestic demand to weigh on the sector."