According to data released by S&P Global, the US Final Manufacturing Purchasing Managers’ Index (PMI) declined to 47.9 in December. This figure marks a notable drop from November’s 49.4 and falls below the preliminary estimate of 48.2, representing the lowest reading since August.
The persistent downward trend keeps the PMI below the crucial 50-mark, indicating a contraction within the manufacturing sector.
The decline in the PMI was chiefly influenced by a sharp downturn in both new orders and job numbers, illustrating significant challenges within the sector. Interestingly, despite these concerning figures, the confidence levels within the business sector rebounded to their highest point in three months.
The continuous contraction in the manufacturing PMI underscores the prevailing hurdles faced by the industry, emphasizing the need for strategic measures to uplift the sector. The slump in new orders and employment signifies potential headwinds for economic recovery, urging policymakers and industry stakeholders to address these issues and pave the way for sustained growth in the manufacturing domain.