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Manufacturing PMI Falls to 10-Year Low in December

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Economic activity in the manufacturing sector hit a 10-year low in December, reports the Institute for Supply Management in its most recent Report on Business. The PMI for December was 47.2 percent, a decrease of 0.9 percentage points and the lowest reading since June 2009.

Of the 18 manufacturing industries, only three reported growth in December, including miscellaneous manufacturing. Among the 15 industries reporting contraction included fabricated metal products, primary metals, machinery, appliances and components, and transportation equipment.

Among other indices, New Orders fell 0.4 percentage points to 46.8 percent; the Production Index was at 43.2 percent, down 5.9 percentage points; and the Employment Index declined 1.5 percentage points to 45.1 percent.

The PMI demonstrated contraction for the fifth straight month. However, the 12-month average of the PMI totaled 51.2 percent, above the figure representing growth in the manufacturing economy.

The December PMI of 47.2 percent corresponds to a 1.3 percent increase in GDP.

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