US factory sector activity shrinks for ninth month in a row, ISM says
Factory sector activity in the States shrank for a ninth month in a row at the end of 2024, the results of a closely followed survey revealed.
The Institute for Supply Management's manufacturing sector Purchasing Managers' Index improved from a reading of 48.4 for November to 49.3 in December (consensus: 48.4).
The 50 point level denotes the threshold separating a contraction from an expansion both for the headline as well as for all of the subindices.
A key sub-index tracking new orders increased from 50.4 during the prior month to reach 52.5.
The sub-index for production meanwhile improved from a print of 46.8 during the prior month to 50.3, whilst that linked to the prices paid by companies rose from 50.3 to 52.5.
Comments by purchasing managers from the various sectors were mixed.
On the down side, the ISM highlighted the Machinery and Fabricated Metal Products sectors, with a manager in the former saying that he had observed a "significant slowdown" in production requirements over the preceding two months.
A manager from the Electrical Equipment space on the other hand reported that his plant was running at full capacity.
Another executive, from the Miscellaneous Manufacturing segment, spoke of an increased demand outlook for 2025.
"[…] The upshot is that while manufacturing activity remains in the doldrums, the recent less gloomy survey data point to slightly better times ahead. This will not be enough to prevent a slowdown in the economy this year, though, given its heavy weighting towards services," said Thomas Ryan, North America economist at Capital Economics.