• US S&P Global Manufacturing PMI dropped below 50 in early November.
• US Dollar Index extended its daily slide after the data.

Business activity in the US manufacturing sector contracted in early November with the S&P Global Manufacturing PMI dropping to 47.6 from 50.4 in October. This reading came in weaker than the market expectation of 50.

"Contributing to the decrease in the headline figure was a renewed fall in output and a sharper decline in new orders," S&P Global explained in its publication.

Commenting on the survey, "in this environment, inflationary pressures should continue to cool in the months ahead, potentially markedly, but the economy meanwhile continues to head deeper into a likely recession," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.

Market reaction

The US Dollar Index fell sharply with the initial reaction to this data and was last seen losing 0.6% on the day at 106.50.