December PMI Fell Slightly to 48.2%, Reports Institute of Supply Management

Tempe, AZ, January 4, 2016—The December PMI registered 48.2%, a decrease of 0.4 percentage point from the November reading of 48.6%, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

The New Orders Index registered 49.2%, an increase of 0.3 percentage point from the reading of 48.9% in November.

The Production Index registered 49.8%, 0.6 percentage point higher than the November reading of 49.2%.

The Employment Index registered 48.1%, 3.2 percentage points below the November reading of 51.3%.

The Prices Index registered 33.5%, a decrease of 2 percentage points from the November reading of 35.5%, indicating lower raw materials prices for the 14th consecutive month.

The New Export Orders Index registered 51%, up 3.5 percentage points from the November reading of 47.5 %, and the Imports Index registered 45.5%, down 3.5 percentage points from the November reading of 49%.

As was the case in November, ten out of 18 manufacturing industries reported contraction in December. Contraction in new orders, production, employment and raw materials inventories accounted for the overall softness in December.

Of the 18 manufacturing industries, six are reporting growth in December in the following order: Printing & Related Support Activities; Textile Mills; Paper Products; Miscellaneous Manufacturing; Chemical Products; and Food, Beverage & Tobacco Products.

The ten industries reporting contraction in December—listed in order—are Apparel, Leather & Allied Products; Plastics & Rubber Products; Machinery; Primary Metals; Fabricated Metal Products; Transportation Equipment; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Wood Products; and Nonmetallic Mineral Products.