U.S. Manufacturing Activity Contracts Again, but Demand Is Improving

U.S. Manufacturing Activity Contracts Again, but Demand Is Improving

Growth has been a struggle for months, but the manufacturing sector is improving–finally.

The Institute for Supply Management’s Purchasing Managers Index, or PMI, came in at 49.3 for December, up from 48.4 for November. Economists surveyed by FactSet expected a reading of 48.4 so things were a little better than expected.

That is good news, but the manufacturing sector is still contracting. A number above 50 indicates growth. The December reading, reported in January, is the ninth consecutive month of contraction. There was only one reading above 50 last year, in March, and that growth blip is the only reason the U.S. manufacturing economy hasn’t contracted for 26 consecutive months.