US manufacturing PMI falls in December with weak demand

By Ovunc Kutlu

ISTANBUL (AA) - The US Manufacturing Purchasing Managers Index (PMI) fell in December, coming in lower than market estimates, as demand conditions weaken, global data provider IHS Markit said in a report on Tuesday.

The index, which measures the activity level of purchasing managers in the manufacturing sector, fell 1.5 points to 47.9 in December, down from 49.4 in November, according to the figures.

The market expectation for the index was to come in at 48.2.

A reading above 50 indicates expansion, and below 50 shows contraction.

"Contributing to the overall decline in operating conditions was a sharper fall in new orders during December. The decrease in sales quickened and was the fastest since August," said the report.

"The slowdown is spreading to the labor market. Payrolls were cut for a third month running as increasing numbers of firms grew concerned about the development of excess operating capacity," according to IHS Markit Chief Business Economist Chris Williamson.

"The fourth quarter has consequently seen factories reduce employment at a pace not seen since 2009 barring only the early pandemic lockdown months."