The manufacturing sector expanded in December, according to supply executives in the latest Manufacturing ISM Report on Business. The December PMI was 55.5 percent, 3.2 percentage points lower than November's 58.7 percent.
The New Orders Index registered 57.3 percent, a decrease of 8.7 percentage points from November. The Production Index registered 58.8 percent, 5.6 percentage points below November.
The Employment Index of 56.8 percent increased 1.9 percent from November's 54.9 percent. Inventories of raw materials registered 45.5 percent, down 6 percentage point from the November reading of 51.5 percent.
A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
"Comments from the panel are mixed, with some indicating that falling oil prices have an upside while others indicate a downside. Other comments mention the negative impact on imported materials shipment due to the West Coast dock slowdown," said Bradley Holcomb, chairman of the Institute for Supply Management Manufacturing Business Survey committee.
Of the 18 manufacturing industries, 11 are reporting growth in December in the following order: Printing & Related Support Activities; Fabricated Metal Products; Primary Metals; Furniture & Related Products; Food, Beverage & Tobacco Products; Petroleum & Coal Products; Textile Mills; Paper Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; and Transportation Equipment.
The six industries reporting contraction in December are: Plastics & Rubber Products; Wood Products; Machinery; Nonmetallic Mineral Products; Chemical Products; and Computer & Electronic Products.
For more information, visit www.ism.ws.
