Jan. 8, 2014
ISM's PMI Closes Year at Strong 57 Percent
Economic activity in the manufacturing sector expanded in December for the seventh consecutive month, according to the latest Manufacturing Report on Business from the Institute for Supply Management, Tempe, Ariz. ISM's PMI registered 57 percent in December, the second-highest reading of the year behind the 57.3 reported the previous month.
Of the 18 manufacturing industries surveyed, 13 reported growth in December, including primary metals, fabricated metal products and miscellaneous manufacturing. Machinery was among the four industries reporting contraction.
The December PMI indicates growth for the 55th consecutive month in the overall economy and expansion in the manufacturing sector for the seventh consecutive month. The average PMI for the full year corresponds to a 3.7 increase in real gross domestic product. "Additionally, if the PMI for December is annualized, it corresponds to a 4.6 percent increase in real GDP annually," says Bradley Holcomb, chairman of ISM's Manufacturing Business Survey Committee.
Also in December, the New Orders index increased 0.6 percentage point to 64.2 percent, the highest reading since April 2010. The Employment Index inched up 0.4 percentage point to 56.9 percent, the highest mark since June 2011. ISM's Production Index registered 62.2 percent in December, a decrease of 0.6 percentage point compared to November. Any reading above 50 indicates growth.