ISM Manufacturing contracts in December

The U.S. manufacturing sector contracted in January, as the Manufacturing PMI® registered 47.4 percent, 1 percentage point below the seasonally adjusted reading of 48.4 percent recorded in December.

Employment Index continued in expansion territory (50.6 percent, down 0.2% point from December’s seasonally adjusted 50.8%) after emerging from contraction territory (48.9%, seasonally adjusted) in November.

The New Orders Index remained in contraction territory at 42.5%, 2.6 points lower than the 45.1% recorded in December.

The New Export Orders Index reading of 49.4% is down 3.2 points higher compared to Decembers reading of 46.2%.

The Inventories Index registered 50.2%, 2.1 points lower than the December reading of 52.3%.

Read the ISM release.