United States: U.S. manufacturing rises to two-year high in December
January 3, 2017
The ISM manufacturing index advanced strongly in December, signaling a notable improvement in the U.S. manufacturing sector. The indicator climbed to 54.7 from 53.2 in November and also beat market expectations of 53.7. The result brought the ISM index further above the 50-threshold that indicates an expansion and to the highest level since December 2014.
Looking at the details, the report provided even more upbeat results than the headline figure. Both new orders and manufacturing production hit the highest level in more than two years in December and job creation reached its highest level in 18 months. Moreover, inventories decreased to a seven-month low, signaling that a depletion in stocks in December will prompt U.S. goods producers to ramp up production in the coming months, given that growth in domestic demand remains solid.
Author: Ricardo Aceves, Senior Economist