US manufacturing sector contracts to 31-month low in December

By Ovunc Kutlu

ISTANBUL (AA) – The US manufacturing sector contracted in December to its lowest level in 31 months, according to a report released Friday by S&P Global.

The purchasing managers' index (PMI), which measures the activity of managers in the manufacturing sector, fell 1.2 points to 46.2, down from 47.4 in November, according to flash estimates by the financial services company.

The expectation for manufacturing PMI was for it to come in at 47.7.

While a reading above 50 indicates expansion in the sector, below 50 represents contraction.

"US private sector firms signaled a further decline in output during December," said the report.

"The downturn gathered pace, as business activity fell at the joint-sharpest rate since May 2020. Manufacturers and service providers alike registered steeper decreases in output, as weaker demand conditions, inflation and hikes in interest rates dampened activity levels," it added.