Manufacturing Sector Growth Slid Back in December

The ISM Manufacturing Index registered 54.1 points in December, down 5.2 percentage points from the previous month, according to the Institute for Supply Management. December’s reading indicates the one-hundred-and-sixteenth consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. Of the eighteen manufacturing industries, eleven reported growth, while six reported contraction. Nine of the eleven manufacturing index components registered slowing of growth, while customer inventories and new exports grew at slightly faster rates (+0.2 and +0.6 percent respectively).

The Employment Index decreased 2.2 points to 56.2 in December, indicating expansion for the twenty-seventh consecutive month. Nine industries reported expansion of employment, while three reported a decrease in employment.

The New Orders Index decreased 11 points to 51.1 in December, indicating growth for the thirty-sixth consecutive month. six industries reported expansion, while five reported a decrease in new orders.

Export orders increased 0.6 points to 52.8, indicating growth for the thirty-fourth consecutive month. Six industries reported growth while four reported a decrease in new export orders.

The Inventories Index registered 51.2 points, down 1.7 points from the previous month. Nine industries reported higher inventories, while seven reported a decrease.

Read the ISM release.



About Author

Hugo Dante is an economist in Washington, D.C. He was previously an economic research specialist at ABA. In addition to the ABA Banking Journal, his writing has appeared in The Hill, The National Interest and Townhall. Views expressed here are his own.