USA manufacturing surges in December, ISM shows

Share
USA manufacturing surges in December, ISM shows

Economic activity in the manufacturing sector expanded in December for the 16th straight month and the overall economy grew for the 103rd consecutive month, according to the monthly survey of the nation's supply executives by the Institute for Supply Management and its Purchasing Managers' Index (PMI). The unexpected increase by the headline index was partly due to a notable acceleration in the pace of new orders growth, as the new orders index jumped to 69.4 in December from 64.0 in November. Any reading above 50 indicates growth in the sector. Eight of the ten index components grew, while the inventories and customers' inventories indexes both contracted.

New orders to manufacturers was the report's major highlight, reaching an nearly 14-year-high, ISM said.

A separate but similar report from the financial information services provider IHS Markit also showed improved results with its gauge showing manufacturing growth in December was the best since March 2015.

Tremendous December gains in domestic manufacturing made 2017 the strongest year for USA manufacturing since 2004. December data also rounded off the strongest quarterly performance since the start of 2015. The PMI averaged 57.6% in 2017 and has been above 50% for 16 consecutive months. Panelists attributed greater production to more favorable demand conditions and increased new order volumes. Two industries reported contraction during the period: wood products and textile mills. That indicated that manufacturers were still adding jobs but at a slower rate.

Manufacturers expected to see six months of price increases for some raw materials in the wake of the late summer hurricanes - especially Hurricane Harvey's hit to the key chemical and oil production facilities in Houston. In responding to ISM's survey, 65 percent stated that they had difficulty hiring new employees and 44 percent increased starting pay in an effort to attract new workers.

Andrew Hunter, US economist at Capital Economics, said the rebound in the ISM manufacturing index leaves it close to a 13-year high and at a level that historically has been consistent with GDP growth accelerating to more than 4% in annual terms.

Share

Advertisement

Related Posts

Mike Pence to Lead US Delegation to Olympics in South Korea
As well as the Olympics, the two sides could bring up their own priority issues, which analysts say will be much more challenging. Meanwhile, South Korea has already made headway to ensure it hosts the Winter Olympics without any diplomatic hiccups.

Three Soldiers fall from Helicopter during Practice Drill
According to reports, the injured soldiers were part of the parade that will be held at Army Parade Ground in Delhi Cantonment. An official from the Indian Army said that all the 3 jawans are safe and further investigation is underway.

Taylor's Reputation Tour Could Be the Top-Selling Tour of ALL TIME
Swift's first single off the Reputation album , " Look What You Made Me Do " broke multiple records within hours of its release. Fans are balking at purchasing tickets for Taylor Swift's Reputation tour given the high price tag attached to the seats .

Georgia QB Jacob Eason expected to transfer to Washington, report says
He added: "You could be mad about it, you could sulk about it all season, but I took what happened and did what I could with it". He'd possess two years of eligibility after sitting out the 2018 college football season based on NCAA transfer rules.

Lawmakers seek answers on vets' home Legionnaires' outbreak
He's also criticized the director of the Illinois Department of Public Health's response to the outbreak - and says Dr. Jeffries said the state has a plan on standby and will move it forward, but didn't provide any details.

Diet Coke unveils new look, 4 new flavors
Pellegrino growing in popularity , Diet Coke's latest move is a way to keep up with the changing trends in flavours and packaging. According to Acevedo, Diet Coke and its new flavors complement the brand's Coca-Cola Zero Sugar .

SNK Heroines: Tag Team Frenzy announced for Nintendo Switch
SNK and NIS America did have a surprise for us during today's Nintendo Direct Mini in the shape of SNK Heroines Tag Team Frenzy . The trailer showed series mainstays Mai Shiranui, Athena, Yuri Sakazaki, Kula Diamond and Leona Heidern.

Man Who Shot Knoxville Officer Added to TBI's Ten Most Wanted List
His Facebook page reportedly features shirtless photos of the suspect showing off his Swastika tattoos. Wilson fired at the officer while in his vehicle , and then got out and continued firing, Rausch said.

Excluding Florida from new offshore drilling plan looks partisan
Democrats from coastal states accuse Zinke and Trump of punishing states with Democratic leaders while rewarding Republicans. President, I must say I've seen political games being played with trying to drill off of the coast of Florida", said U.S.

HBO's First Game of Thrones Spinoff Won't Air Until At Least 2020
The head of HBO has discussed the possibility of there being a Game Of Thrones revival in the years to come. We're not doing a final season and then, 'Following it at 11pm...' I've seen some exciting material.

© 2015 ExpressNewsline. All Rights reserved.