U.S. Manufacturing Activity Sees Biggest Single-Month Drop in 10 Years
January 3, 2019
American manufacturing growth saw a precipitous drop in December, adding to concerns that the economy may be cooling. The Institute for Supply Management (ISM) manufacturing index fell to 54.1 last month, down from 59.3 the previous month. This marks the lowest level since November 2016, and the largest single-month decline since November 2008.
The index is based on a survey of more than 300 manufacturers and is based on the firms’ production, new orders, inventory, and employment. December’s drop was primarily driven by a sharp decline in the index’s new orders component, which fell to 51.1, down from 62.1 in November.