According to the Institute of Supply Management’s most recent report on manufacturing business, economic activity in the US manufacturing sector shrank in December for the second consecutive month after growing for 29 months (ISM). The manufacturing purchasing managers’ index (PMI) for December increased by 48.4% from the 49.0% recorded in November.

This number represents a decline in the overall economy following 30 consecutive months of growth.

The manufacturing PMI reading is at its lowest level since May 2020, when it stood at 43.5%. When compared to the 47.2 percent recorded in November, the new orders index for December remained in contraction zone at 45.2%.

In comparison to November’s result of 51.5 percent, the output index for the month was 48.5%. Compared to November’s reading of 43%, the prices index registered 39.4%, which is the lowest level since April 2020. (35.3 per cent).

In December, the backlog of orders index registered 41.4%, up from 40% in November. Compared to the previous month’s reading of 50.9 percent, the inventory index showed a reading of 51.8%.

The Tempe, Arizona-based ISM reported in a release that the new export orders index reading of 46.2% was down 2.2 percentage points from November’s level of 48.4%.

The imports index remained in negative territory, dropping from 46.6 to 45.1% in November.