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Manufacturing activity increases in December

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Manufacturing activity increases in December

Key indicator beats expectations.

Economic activity in the manufacturing sector expanded in December for the seventh consecutive month, and the overall economy grew for the 55th consecutive month, according to the nation's supply executives in the latest Manufacturing ISM Report On Business®.  The overall PMI decreased slightly, however, dropping 0.3 percentage points to 57.0 from November to December. (50 or higher indicates expansion).

The PMI reading exceeded expectations, which ranged from 56.7 to 56.9.

New orders increased by .6 percentage points in December, while production fell by the same amount. The employment index increased by .4 percentage points, while backlogs fell by 2.5 percentage points during the month.

"Comments from the panel generally reflect a solid final month of the year."

Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management Manufacturing Business Survey Committee, indicated that the results suggest a strengthening expansion.

“December's employment reading is the highest since June 2011 when the Employment Index registered 59 percent. Comments from the panel generally reflect a solid final month of the year, capping off the second half of 2013, which was characterized by continuous growth and momentum in manufacturing."

 

 

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