The unchanged reading of 46.7 for the ISM manufacturing index in November suggests that manufacturing activity continued to struggle despite the end of the United Auto Workers strike. There will almost certainly be some recovery in manufacturing output after the 0.7% m/m decline in in October, but growth in the sector is likely to be weaker over the rest of the quarter. Meanwhile, the Fed has little reason to be concerned about the rise in the prices paid index, which still points to a continued downward trend in inflation.
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