Posted on 01/03/2025 7:25:30 AM PST by lasereye
U.S. manufacturing moved closer to recovery in December, with production rebounding and new orders rising further, though factories faced higher prices for inputs as the year ended.
The Institute for Supply Management (ISM) said on Friday that its manufacturing PMI increased to 49.3 last month, the highest reading since March, from 48.4 in November.
A PMI reading below 50 indicates contraction in the manufacturing sector, which accounts for 10.3% of the economy. December was the ninth consecutive month that the PMI remained below the 50 threshold.
Manufacturing was battered by the Federal Reserve's aggressive monetary policy tightening in 2022 and 2023 to tame inflation. But sentiment surveys, including the PMI, have exaggerated the magnitude of the decline in factory production.
Government data last month showed manufacturing growing at a 3.2% annualized rate in the third quarter and contributing to the economy's 3.1% expansion pace during that period.
The U.S. central bank is cutting interest rates, lowering its benchmark overnight interest rate by 25 basis points to the 4.25%-4.50% range last month. It was the third consecutive rate cut since the Fed started its easing cycle in September.
The Fed's policy rate was hiked by 5.25 percentage points in 2022 and 2023.
A pledge by President-elect Donald Trump's incoming administration to cut taxes could provide a boost to manufacturing. But other policy promises, including higher tariffs on imported goods, could raise prices of raw materials.
The Fed has projected two rate cuts this year, fewer than the four it had forecast in September because of the economy's resilience and uncertainty over the impact of the Trump administration's policies.
The ISM survey's forward-looking new orders sub-index increased to 52.5 from 50.4 in November, which marked the first expansion since March. Production at factories rebounded after contracting for months.
(Excerpt) Read more at finance.yahoo.com ...
I thought the Biden/Harris economy was booming. The only boom in the Biden/Harris economy was government.
Bidenomics at work......................
Optimism boom....as was the case for me personally....purchased long awaited new vehicle AFTER NOV. 5.
This, abd many other issues, is why Trump needs to stop talking about a “golden age.” His (realistic) message yesterday regarding jow the mess we’re in reqiires leadershop a good start
There are some BIG monsters coming our way.
Our government statistics bureaucrats and their willing media expect ONLY the headline to be read and remembered. Details? Not so much.
Yahoo trying to boost Biden as he exits. People know the truth.
Once upon a time most of those imported materials were supplied from domestic sources. Then hedge funds discovered the massive profits to be made outsourcing and it became the new corporate buzz word
CEO rushed to end long term arrangements, some going back decades, to rush to off source.
The result is a hollowed out US middle class. This, and other economic dogmas, have been slowing moving the US to a 3rd world status economy of haves and have nots.
It past time we start questioning the 80 years old economic assumptions, made in the aftermath of WW2 and the Cold War, that current dogmas about trade are actually good for the US National Interests. It maybe time to recognized that these trade polices are actually to designed to service globalist intrests at the avereage US workers expense.
WTF does PMI stand for...dumbass article writer correctly defines the abbreviation ISM, but in the same paragraph fails to similarly define PMI.
And BS.
I notice everybody just makes up whatever makes them feel better now.
WTF does PMI stand for..
What Is the Purchasing Managers’ Index (PMI)?
The Purchasing Managers’ Index (PMI) is an indicator of the prevailing direction of economic trends in the manufacturing and service sectors. The indicator is compiled and released monthly by the Institute for Supply Management (ISM), a nonprofit supply management organization.
It’s not produced by the govt, but by business, conspiracy theories notwithstanding.
Thank you!
Government statistics are fudged and meaningless.
The PMI is not government.
I won’t believe any numbers coming out of the Biden Admin. These numbers could be pumped up for his legacy.
The PMI is not produced by the government. The numbers aren’t that good either, even though it was improved.
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