FXStreet (Mumbai) - The data from the US manufacturing sector seems to be in focus this week. The ISM manufacturing PMI is scheduled to be released today. The manufacturing sector in has suffered in the recent times on account of slowing global growth as well as the strong US dollar which has led to lower demand from overseas. Low oil price has also been an important factor that has checked increase in manufacturing activity Chicago purchasing manager index (PMI)released last week showed an unexpected plunge in figures in December. The Chicago PLI dropped to 42.9 in December, which is the lowest reading since July 2009. This was down from 48.7 in November and much worse than the 50.0 expected by economists. Economists however expect the ISM Manufacturing PMI to have improved in December. Manufacturing index is estimated to have climbed to 49.0 in December from 48.6 in November. BNP Paribas noted in a report "Thus far, the average of the regional manufacturing surveys, on an ISM-adjusted basis, suggests that the manufacturing sector remains in contraction. We continue to see headwinds to the manufacturing sector from the oil price shock and the strong dollar." On the other hand, the research team at TDS expects the US headline ISM manufacturing index to fall in December. TDS estimates the headline ISM manufacturing index to dip to 48.1 from 48.6, the lowest level on this indicator since the recession. The decline, TDS feels “is consistent with the souring tone in the wide array of regional PMIs.” TDS has taken into consideration indicators such as new orders, employment and order backlog to point to conclude that outlook for this sector will continue to be grim “given the lagged effects of the higher dollar.” For more information, read our latest forex news.