US manufacturing continued expanding in December

The latest report from the Institute for Supply Management (ISM) shows that US manufacturing activity expanded in December for the fifth consecutive month, while the overall US economy grew for the eighth consecutive month.

The report was issued Monday by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management^TM Manufacturing Business Survey Committee. "The manufacturing sector grew for the fifth consecutive month in December as the PMI rose to 55.9 percent, its highest reading since April 2006 when it registered 56 percent. This month's report is quite strong as both the New Orders and Production Indexes are above 60 percent. The sector may be benefiting from an excessive destocking cycle as indicated by the recent performance of the Customers' Inventories Index. Customers' inventories have been 'too low' for nine consecutive months, and this month's index is the lowest reading since the inception of the index in January 1997. Overall, the recovery in manufacturing is continuing, but there are still some industries mired in the downturn as evidenced by the seven industries still in decline."

One of the seven industries still in decline in December was fabricated metal products, though some steel-consuming sectors, including appliances and transportation equipment, reported growth during the month. Steel was also among the commodity products which went up in price during December, according to the report.

Other data in that report were as follows:

*Number of months moving in current direction.