United States: ISM manufacturing at lowest level in more than six years
January 4, 2016
In December, the ISM manufacturing index came in at 48.2%, which was just below the 48.6% recorded in November and marked the lowest reading since June 2009, when the U.S economy was mired in a recession. The result contrasted market expectations of 49.2%. The index has weakened for three consecutive months and is now a bit further below the 50.0% threshold, which distinguishes between contraction and expansion in the manufacturing sector.
The index was mainly dragged down by declines in employment and supplier delivery times. On a positive note, production and new orders increased in December.
Author: Carl Kelly, Economist