US manufacturing contraction slows in December
2025.01.03 11:06
Investing.com – improved slightly in December despite remaining in contraction territory, while orders expanded for a second consecutive month.
The figures come as companies are beginning to gear up for incoming US President Donald Trump’s new administration, which may potentially feature more business-friendly policies like looser regulations and tax cuts.
The Institute for Supply Management’s purchasing managers’ index for the manufacturing sector rose to 49.3 last month, up from 48.4 in November. Economists had predicted a modest dip to 48.2.
A reading below 50 typically denotes contraction in the industry, which makes up over 10% of the overall US economy.
It was the ninth consecutive month that the measure was below the 50-point threshold, although the number was well above a level of 42.5 that the ISM says indicates broader economic expansion.
The closely-monitored and forward-looking sub-index came in at 52.5, increasing from 50.4 in the preceding month. A separate index focused on production also edged up to 50.3 from 46.8 in November.
ISM’s measure of prices paid by manufacturers rose to 52.5, up from 50.3.
“US manufacturing activity contracted again in December, but at a slower rate compared to November,” said ISM Business Survey Committee Chair Timothy Fiore in a statement. “Demand showed signs of improving, while output stabilized and inputs stayed accommodative.”
