ISM Manufacturing falls in December

The U.S. manufacturing sector contracted in December, Manufacturing PMI® registered 47.4%, up 0.7 percentage point (pp) from the 46.7% recorded in November. Regarding the overall economy, this figure indicates that the economy continued in contraction for a third month after one month of weak expansion preceded by nine months of contraction and a 30-month period of expansion before that (a manufacturing PMI® above 48.7%, over a period of time, generally indicates an expansion of the overall economy).

The Employment Index registered 48.1%, up 2.3 pp from November’s reading of 45.8%.

The New Orders Index remained in contraction territory at 47.1%, 1.2 pp lower than the figure of 48.3% recorded in November.

The New Export Orders Index reading of 49.9% is 3.9 pp higher than November’s figure of 46%.

The Inventories Index decreased 0.5 pp to 44.3%; the November reading was 44.8%.

Read the ISM release.