Manufacturing Sector Growth Continues in December

The ISM Manufacturing Index registered 60.7 points in December, an increase of 3.2 percentage points from the November reading of 57.5%. This indicates expansion in the overall economy for the eighth month in a row.

Sixteen of the 18 manufacturing industries reported growth: Apparel, Leather & Allied Products; Furniture & Related Products; Wood Products; Fabricated Metal Products; Machinery; Computer & Electronic Products; Transportation Equipment; Plastics & Rubber Products; Paper Products; Chemical Products; Petroleum & Coal Products; Primary Metals; Textile Mills; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; and Miscellaneous Manufacturing. The two industries reporting contraction in December are: Printing & Related Support Activities; and Nonmetallic Mineral Products.

The Employment Index registered 51.5% in December; 3.1 percentage points higher than the November reading of 48.4%. Following one month of contraction, the Employment Index moved back into expansion territory.

The New Orders Index registered 67.9% in December; an increase of 2.8 percentage points compared to the 65.1% reported in November. This is the seventh consecutive month of growth for the index.

The New Export Orders Index 57.5 percent in December, a decrease of 0.3 percentage points from the previous month.

The Inventories Index was 51.6% in December, 0.4 percentage point higher than the 51.2% reported for November. Inventories grew for a third consecutive month after three months of contraction.

Read the ISM release.