Daily News: January 3, 2014

ISM: December Manufacturing Index Second Highest of ’13

The Institute for Supply Management said its Purchasing Managers Index registered 57%, the second highest reading for 2013, just 0.3 percentage point below November’s reading of 57.3%.

A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.

In addition, economic activity in the manufacturing sector expanded in December for the seventh consecutive month, and the overall economy grew for the 55th consecutive month, the ISM said.

The New Orders Index increased in December by 0.6 percentage point to 64.2%, which is its highest reading since April 2010 when it registered 65.1%.

The Employment Index registered 56.9%, an increase of 0.4 percentage point compared to November’s reading of 56.5%. December’s employment reading is the highest since June 2011 when the Employment Index registered 59%.

Comments from the panel generally reflect a solid final month of the year, capping off the second half of 2013, which was characterized by continuous growth and momentum in manufacturing.

Of the 18 manufacturing industries, 13 are reporting growth in December in the following order: Furniture & Related Products; Plastics & Rubber Products; Textile Mills; Apparel, Leather & Allied Products; Computer & Electronic Products; Paper Products; Transportation Equipment; Primary Metals; Fabricated Metal Products; Wood Products; Printing & Related Support Activities; Food, Beverage & Tobacco Products; and Miscellaneous Manufacturing.

The four industries reporting contraction in December are: Nonmetallic Mineral Products; Machinery; Chemical Products; and Electrical Equipment, Appliances & Components.

To read the full report click here.