Economy
December manufacturing remains in red: ISM
Written by Becca Moczygemba
January 3, 2024
Domestic manufacturing activity receded for the 14th straight month, according to the latest Institute for Supply Management (ISM) Manufacturing PMI report.
The ISM Manufacturing PMI registered 47.4% in December, up 0.7 percentage points from 46.7% reported in November. A reading above 50 indicates the manufacturing economy is growing, while a reading below 50 indicates contraction. The last time it was above 50 was in October 2022 when the reading was 50.2.
“The share of sector GDP registering a composite PMI calculation at or below 45% — a good barometer of overall manufacturing weakness — was 48% in December, compared to 54% in November and 35% in October,” Timothy R. Fiore, ISM chair, said in a statement on Wednesday.
A manufacturing PMI above 48.7% over time generally indicates an expansion of the overall economy, the report noted.
Supplier deliveries are up 0.8 percentage points from 46.2% in November, while the inventories index dropped by 0.5 percentage points.
Overall demand moderated with new orders contracting faster than the previous month, according to the report.
“None of the six biggest manufacturing industries registered growth in December,” Fiore said.
“We are seeing stronger demand from our American Automotive OEM customers now that the United Auto Workers (UAW) strike has been resolved. Looking at a very strong first quarter of 2024,” a producer of primary metals said.
Another survey respondent who produces fabricated metal products said, “We are forecasting a somewhat strong year for 2024. We’re currently mildly optimistic for how next year will play out.”
Likewise, a transportation equipment provider noted that demand is up across the board and orders are increasing.
The only manufacturing industry that reported growth in December was primary metals, ISM said.
Becca Moczygemba
Read more from Becca MoczygembaLatest in Economy
New York state manufacturing activity ramps up to multi-year high
New York state’s manufacturing sector saw substantial recovery in November, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
CRU: Dollar and bond yields rise, metal prices fall as Trump wins election
Donald Trump has won the US presidential election. The Republican party has re-taken control of the Senate. Votes are still being counted in many tight congressional races. But based on results so far, the Republicans seem likely to maintain control of the House of Representatives. If confirmed, this will give Trump considerable scope to pass legislation pursuing his agenda. What this means for US policy is not immediately obvious. Trump will not be inaugurated until Jan. 20. In the coming weeks and months, he will begin to assemble his cabinet, which may give a clearer signal on his policy priorities and approaches. Based on statements he made during the presidential campaign, we have set out the likely direction of his economic policy here and green policy here.
ISM: Manufacturing index fell in Oct to lowest point of ’24
Domestic manufacturing contracted for the seventh straight month in October, according to the latest report from the Institute for Supply Management (ISM). This marks the 23rd time in the last 24 months that it has been in contraction.
Chicago Business Barometer slips in October
The Chicago Business Barometer fell to a five-month low in October and continues to indicate deteriorating business conditions, according to Market News International (MNI) and the Institute for Supply Management (ISM).
Final Thoughts
We all know the American news cycle moves pretty fast. Viral today, cached tomorrow. So it is with the US presidential election on Tuesday, Nov. 5. People have election fatigue. They've moved on to other things like planning holiday parties, debating Super Bowl hopefuls, or even starting to look forward to our Tampa Steel Conference in February.