US ISM Manufacturing PMI edged up from 48.4 to 49.3 in December, exceeding market expectations of 48.3. Despite the improvement, the index remained below the 50.0 threshold, signaling contraction for the ninth consecutive month and for the 25th time in the past 26 months.
The ISM highlighted that the December reading corresponds to an annualized 1.9% growth in real GDP, indicating a modest contribution to the broader economy.
Delving into the subcomponents, new orders climbed from 50.4 to 52.5, while production improved notably, rising from 46.8 to 50.3. However, employment fell sharply from 48.1 to 45.3. Additionally, prices accelerated, increasing from 50.3 to 52.5, pointing to renewed input cost pressures.
