Nick Nasad
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Graphic: US ISM Manufacturing Index Leading Manufacturing Production

The key macro data today from the US was the ISM manufacturing index which came in at 57.0 for December, just a slight decrease from the 57.3 reading seen in November, and yet another positive sign for the US manufacturing sector.

The chart above shows the ISM index in blue, overlayed with manufacturing production in red. Its interesting to note that production has not yet turned upward and followed the ISM, which shows the lag in production over a survey like the ISM. What it does tell me at least is that 2014 could shape up to be a good year for the sector as new orders are turned into shipments. A stronger US economy should translate to a steady tapering in bond purchases and the higher chance that the USD strengthens this year.