There was better than expected news for the US economy this afternoon, with the latest Institute for Supply Management (ISM) index of business activity coming in stronger than expected. In January, the ISM index fell to 53.9 from 55.2 in December. This is the second straight month the index has been above 50. A reading above 50 indicates the manufacturing sector is expanding. However, the decline in the index was not as large as expected. The consensus forecast of Wall Street economists was for the index to fall to 53.5. Late last month, the ISM index was revised to 55.2pc based on new seasonal adjustment factors, up from the initial estimate of 54.7. Commenting on the index, Norbert Ore, chair of the ISM manufacturing business survey committee, said, "Overall the signs are still positive for the first quarter." //www.fxcentre.com