US factory conditions deteriorate at fastest pace in over 2 years in December, S&P Global says
Operating conditions in the US manufacturing sector recorded their steepest drop at the end of 2022 since may 2020, revised survey readings showed.
S&P Global's factory Purchasing Managers' Index dropped from a November reading of 47.7 for November to 46.2, in line with a preliminary reading.
December's PMI decline was also one of the fastest paces of contraction since 2009 as new orders shrank at one of their quickest rates since May 2007.
"Demand for goods dwindled as domestic orders and export sales dropped," said Sian Jones, senior economist at S&P Global Market Intelligence.
"Concerns regarding the outlook for demand weighed on hiring decisions. Job creation was only slight, and largely linked to skilled hires, as firms displayed caution."
Input price inflation did decline to below the series trend, albeit due to "sinking" demand for inputs and a greater supply of materials at suppliers.
The same was true of selling prices, although S&P said that they continued to rise steeply.
"Slower upticks in inflation signal the impact of Fed policy on prices, but growing uncertainty and tumbling demand suggest challenges for manufacturers will roll over into the new year."