Posted January 3, 2020

Manufacturing slowdown continues

Manufacturing contracted for the fifth straight month in December according to the monthly index from the Institute for Supply Management.

The PMI registered 47.2 percent, a decrease of 0.9 percentage point from the November reading of 48.1 percent.

This is the PMI's lowest reading since June 2009, when it registered 46.3 percent.

"The PMI contracted for the fifth straight month, at faster levels compared to November. This marks nine straight months of softening or contraction in manufacturing. The sector's rate of contraction is the fastest since June 2009, when the PMI registered 46.3 percent," said Timothy R. Fiore, chair of the ISM Manufacturing Business Survey Committee

All but two (Supplier Deliveries and Prices) of the manufacturing subindexes registered at levels associated with contraction. For the fourth straight month, two of the six big industries expanded, and four contracted.

A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.