US Markit manufacturing PMI final December 2017 55.1 vs 55.0 exp

December 2017 US Markit manufacturing PMI final 2 January 2018

Flash 55.0. Nov 53.9
Employment 55.8 vs 55.7 flash. Nov 54.7. Highest since Sep 2014
Output 55.9 vs 55.7 flash. Nov 54.5.

That puts the headline number at the highest since Mar 2015.

Markit notes;

Output expands at quickest pace in 11 months, supported by steep increase in total new work
Rate of job creation fastest since September 2014
Supply chain delays and increased global demand for inputs pushed costs up further, with the rate of cost inflation remaining sharp overall. Charge inflation, however, softened
Factory gate charges rose solidly, despite the rate of inflation softening since November

So, some rising wage pressure noted, which will be lapped up by the Fed. Tomorrow is ISM day and the price components there will be the numbers to watch. It could be an early year indicator for the markets appetite for another Fed hike.

The dollar hasn’t done much but it’s gained a few pips around the FX space.