According to the ISM Manufacturing Index for December, economic activity in the manufacturing sector expanded to a PMI of 53.9%, marking this the 29th consecutive month as the index was up 1.2 percentage points. The overall economy grew for the 31st consecutive month with 9 of 18 manufacturing industries reporting growth for the month.

Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee, said, "The New Orders Index increased 0.9 percentage point from November to 57.6 percent, reflecting the third consecutive month of growth after three months of contraction. Prices of raw materials continued to decrease for the third consecutive month, with the Prices Index registering 47.5 percent, which is 2.5 percentage points higher than the November reading of 45 percent. Manufacturing is finishing out the year on a positive note, with new orders, production and employment all growing in December at faster rates than in November, and with an optimistic view toward the beginning of 2012 as reflected by the panel in this month's survey."

Inventories for December fell 1.2 points to an index of 47.1 along with customers’ inventories, which was down 7.5 points to an index of 42.5. A reading below 50 percent indicates customers' inventories are considered too low. Backlog of orders were up for the month while new export orders gained one point. Imports also saw gains, up 5 points to 54%.

Source: Institute for Supply Management