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Business activity in the US manufacturing sector fell to the lowest since May 2020


January, 05 2023
watermark Economic news

According to the Institute for Supply Management (ISM), the index of business activity in the US manufacturing sector in December fell to 48.4 points, from 49 points a month earlier. 


As you know, the indicator value below 50 points indicates a decline in activity in the sector. Thus, the index dropped to the lowest since May 2020. Analysts expected the index to drop to 48.5 points. 


The subindex of new orders decreased in December to 45.2 points (from 47.2 points a month earlier), production – to 48.5 points from 51.5 points. At the same time, the employment indicator rose to 51.4 from 48.4 points.


The producer price subindex dropped to 39.4 points from 43 points.


Analysts note that the growth of activity was recorded only in two production sectors: oil and coal and in the production of primary metals. The decline was noted in 13 industrial sectors.


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