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ECONOMICS COMMENTARY
Feb 04, 2014
Markets misled by US factory order book signal
Stock markets have fallen sharply in what looks to be an over-reaction to a steep deterioration in the ISM survey. The ISM's manufacturing new orders index suffered its largest fall in points terms since December 1980, plummeting 13.2 points from 64.4 in December to 51.2 in January. The drop in new orders contributed to a steep fall in the survey's headline PMI, which dropped from 56.5 to 51.3.
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