Posted January 3, 2018

Manufacturing expanded in December

Manufacturing expanded in December as the monthly Institute for Supply Management index registered 59.7 percent, an increase of 1.5 percentage points from the November reading of 58.2 percent.

“This indicates growth in manufacturing for the 16th consecutive month, led by strong expansion in new orders and production with hiring growing at a slower rate and supplier deliveries continuing to struggle,” Timothy R. Fiore, chair of the Institute for Supply Management Manufacturing Business Survey Committee. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

ISM’s New Orders Index registered 69.4 percent in December, which is an increase of 5.4 percentage points when compared to the 64 percent reported for November, indicating growth in new orders for the 16th consecutive month. This is the highest reading since January 2004, when the index registered 70.6 percent.

“New Orders expansion continues at a strong pace, with the index at seven straight months of levels above 60 percent. This is its highest expansion level in 14 years,” said Fiore.