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US factory activity slumps again in December - ISM

By Frank Prenesti

Date: Monday 05 Jan 2026

(Sharecast News) - Economic activity in the US manufacturing sector contracted in December for the 10th consecutive month, according to a widely-read survey published on Monday.


The Institute for Supply Management's manufacturing purchasing managers index registered 47.9% in December, a 0.3-percentage point decrease from November's 48.2% and the lowest reading of 2025. However, the number remained above 42.3, a level that ISM said over time generally indicated an expansion of the overall economy

A separate index for new orders contracted for a fourth straight month in December following one month of growth; the figure of 47.7% is 0.3 of a percentage point higher than the 47.4% recorded in November. This measure has contracted in 10 of the last 11 months with demand curbed by the rise in some goods prices because of import tariffs.

The prices index remained in expansion, registering an unchanged 58.5% from November's reading, while the orders backlog index came in at 45.8% percent, up 1.8 percentage points. The employment index registered 44.9%, up 0.9 of a percentage point.

Reporting by Frank Prenesti for Sharecast.com

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