December’s manufacturing PMI in the US increased by 3.2 points to 60.7pc against 57.5pc in November according to the Institute for Supply Management (ISM).
According to the ISM Manufacturing Business Survey, the December figure regained positive momentum after contracting in March, April, and May 2020, which ended an almost 11-year growth streak. However, the data indicated that the overall economy and manufacturing sector are continuing the recovery and growing faster since June 2020, even establishing new thresholds as the production index reached a 10-year high since January 2011.
The new orders index increased by 2.8 points to 67.9pc in December from 65.1pc in November. Production increased by four points to 64.8pc in December, compared to 60.8pc in the prior month. The supplier deliveries index rose by 5.9 points to 67.6pc in December against 61.7pc the previous year.
The inventories index increased marginally by 0.4 points to 51.6pc in December from the prior month’s 51.2pc, but the index for prices increased by 12.2 points to 77.6pc in December against 65.4pc in November. The backlog of orders climbed by 2.2 points to 59.1pc in December from 56.9pc in the previous month, while the customer inventory index increased by 1.6 points to 37.9pc from 36.3pc during the same period.
The employment index increased by 3.1 points to 51.5pc in December against 48.4pc in November. employment potential in manufacturing is being strained by companies operating in reconfigured factories, higher than normal absenteeism, sanitation schedules requiring short-term shutdowns, some non-returning employees, and a slow hiring process.
Two indexes contracted, though, as new export orders declined by 0.3pc points to 57.5pc and imports index slipped down by 0.5pc points to 54.6pc in December, both indexes against November levels.