Manufacturing Growth Continues, Food Industry Going Strong: December PMI Report

The manufacturing sector expanded once again in December, with the Institute for Supply Management’s PMI hitting 59.7%, an increase of 1.5% over November and nearly 2% higher than the average of the last 12 months.

Timothy R. Fiore, chair of the ISM, said in a press release: “This indicates growth in manufacturing for the 16th consecutive month, led by strong expansion in new orders and production with hiring growing at a slower rate and supplier deliveries continuing to struggle.”

Here’s what the food, beverage, and tobacco products industry reported for December:

• Growth in new orders

• Growth in production

• Growth in employment

• Slower supplier deliveries

• Lower inventories

• Customer inventories too low

• Increased prices for raw materials

• Decrease in order backlogs

• Growth in new export orders

• Growth in imports

The December results show positive movement compared to the previous month, specifically for order backlogs (in November, there was an increase) and imports (in November, there was a decrease). December was also the 104th consecutive month of growth in the overall economy.