2nd Consecutive Month of Manufacturing Contraction- December 2015 ISM PMI

“Economic activity in the manufacturing sector contracted in December for the second consecutive month, with the December PMI® registering 48.2 percent, a decrease of 0.4 percentage point from the November reading of 48.6 percent. 10 manufacturing industries reporting contraction in December included10 industries reporting contraction in December — listed in order — are: Apparel, Leather & Allied Products; Plastics & Rubber Products; Machinery; Primary Metals; Fabricated Metal Products; Transportation Equipment; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Wood Products; and Nonmetallic Mineral Products.”- From the Institute for Supply Management: December 2015 Manufacturing ISM® Report On Business®

We believe that this contraction has a strong seasonal component, as respondents quoted on the ISM website mentioned reducing inventories for end of year purposes for themselves, and by their customers.
Chart courtesy Calculated Risk blog

Chart courtesy Calculated Risk blog

Chart

The good news from this report would seem to be that the broad economy continues to expand, even if Manufacturing is not.

This entry was posted on Tuesday, January 5th, 2016 at 7:22 pm and is filed under Front Office. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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