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U.S. Manufacturing PMI Falls to 47.9, Signaling Continued Sector Contraction

U.S. Manufacturing PMI Falls to 47.9, Signaling Continued Sector Contraction

The ISM Manufacturing PMI dropped by 0.3 points in December to its lowest level since October 2024, marking the tenth straight month of decline.

Fact Check
The statement is entirely accurate based on official economic data from the Institute for Supply Management (ISM). The PMI value (47.9), the monthly decrease (0.3 points), the historical comparison (lowest since October 2024), and the duration of the contraction (10 months) are all corroborated by Reuters and the official ISM report.
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Summary

The U.S. manufacturing sector showed further signs of weakness as the ISM (Institute for Supply Management) Manufacturing Purchasing Managers Index (PMI) fell by 0.3 points to 47.9 in December, its lowest figure since October 2024. This marks the tenth consecutive month the index has remained below the 50 threshold that separates expansion from contraction. Only 11% of manufacturing industries reported growth, the second-lowest proportion in recent readings, indicating a broad-based slowdown across the sector.

Terms & Concepts
  • ISM Manufacturing PMI: A key economic indicator published by the Institute for Supply Management that measures the performance of the U.S. manufacturing sector.
  • Contraction: An economic phase where business activity declines, often indicated by a PMI reading below 50.
  • Purchasing Managers Index (PMI): A survey-based measure tracking the economic health of manufacturing and service sectors.