ISM: US manufacturing PMI up in December, but still in contraction zone
by ChemOrbis Editorial Team - content@chemorbis.com
According to data released by the Institute for Supply Management (ISM), the seasonally adjusted Purchasing Managers’ Index (PMI) in the US manufacturing sector came in at 47.4 in December, up from 46.7 in November. The figure remained in the contraction zone for the 14th consecutive month.
A Manufacturing PMI above 48.7 percent, over a period of time, generally indicates an expansion of the overall economy.
Four out of five major manufacturing subindexes including New Orders, The Inventories, Customers’ Inventories, and The Prices Index remained weak in December. With 47.1 percent, the New Orders Index also remained in the contraction zone last month, down from 48.3 in November.
“The U.S. manufacturing sector continued to contract, but at a slightly slower rate in December as compared to November. Companies are still managing outputs appropriately as order softness continues. Demand eased, with the (1) New Orders Index contracting at a faster rate, (2) New Export Orders Index essentially flat, and (3) Backlog of Orders Index climbing back above 40 percent but still in fairly strong contraction territory,” Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee, said.
A Manufacturing PMI above 48.7 percent, over a period of time, generally indicates an expansion of the overall economy.
Four out of five major manufacturing subindexes including New Orders, The Inventories, Customers’ Inventories, and The Prices Index remained weak in December. With 47.1 percent, the New Orders Index also remained in the contraction zone last month, down from 48.3 in November.
“The U.S. manufacturing sector continued to contract, but at a slightly slower rate in December as compared to November. Companies are still managing outputs appropriately as order softness continues. Demand eased, with the (1) New Orders Index contracting at a faster rate, (2) New Export Orders Index essentially flat, and (3) Backlog of Orders Index climbing back above 40 percent but still in fairly strong contraction territory,” Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee, said.
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