Jan. 7, 2015
U.S. Manufacturing Sector Continues to Grow
Economic activity in the manufacturing sector expanded in December for the 19th consecutive month as the PMI registered 55.5 percent, reports the Institute for Supply Management, Tempe, Ariz. Though the monthly poll of purchasing managers showed a decline of 3.2 percentage points, the index remains well above the 50.0 percent mark that indicates growth.
Other indices also fell from November highs but remained positive. The New Orders Index was 57.3 percent, down 8.7 percentage points, while the Production Index was 58.8 percent, a 5.6 percentage point decline. The Employment Index, however, increased 1.9 percentage points to 56.8 percent.
Of the 18 manufacturing industries surveyed, 11 reported growth in December, including fabricated metal products, primary metals, transportation equipment, and appliances and components. Machinery was among the six industries reporting contraction.
The average PMI of 55.8 percent for the full year corresponds to a 4.2 percent increase in real gross domestic product, says Bradley Holcomb, chairman of the ISM’s Manufacturing Business Survey Committee.