Purchasing Managers' Index Declined Slightly to 47.9% in Dec.

  1. Home
  2. News
  3. Purchasing Managers' Index Declined Slightly to 47.9% in Dec.
Purchasing Managers' Index Declined Slightly to 47.9% in Dec.

Tempe, AZ, January 5, 2026-The Manufacturing PMI (Purchasing Managers’ Index) registered 47.9% in December, a 0.3-percentage point decrease compared to the reading of 48.2% in November and the lowest reading of 2025, according to ISM. 

The overall economy continued in expansion for the 68th month after one month of contraction in April 2020. (A Manufacturing PMI above 42.3%, over a period of time, generally indicates an expansion of the overall economy.) 

The New Orders Index contracted for a fourth straight month in December following one month of growth; the figure of 47.7% is 0.3 percentage point higher than the 47.4% recorded in November. The December reading of the Production Index (51%) is 0.4 percentage point lower than November’s figure of 51.4%. The Prices Index remained in expansion (or ‘increasing’ territory), registering 58.5%, the same as November’s reading. The Backlog of Orders Index registered 45.8%, up 1.8 percentage points compared to the 44% recorded in November. The Employment Index registered 44.9%, up 0.9 percentage point from November’s figure of 44 percent.

The Supplier Deliveries Index indicated slower delivery performance after one month in ‘faster’ territory. The reading of 50.8% is up 1.5 percentage points from the 49.3% recorded in November. (Supplier Deliveries is the only ISM PMI Reports index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.) The Inventories Index registered 45.2%, down 3.7 percentage points compared to November’s reading of 48.9%.

The New Export Orders Index reading of 46.8% is 0.6 percentage point higher than the reading of 46.2% registered in November. The Imports Index registered 44.6%, 4.3 percentage points lower than November’s reading of 48.9%.

The two manufacturing industries reporting growth in December are electrical equipment, appliances & components; and computer & electronic products. The 15 industries reporting contraction in December-in the following order-are apparel, leather & allied products; wood products; textile mills; paper products; chemical products; printing & related support activities; nonmetallic mineral products; petroleum & coal products; primary metals; miscellaneous manufacturing; plastics & rubber products; fabricated metal products; machinery; food, beverage & tobacco products; and transportation equipment.