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Stan
Manufacturing Slowdown Eases
aol.smartmoney.com
January 2, 2002
U.S. manufacturing activity shrank for the 17th consecutive month in December, though at a slower pace, raising hopes that the struggling sector is poised for a rebound.
The manufacturing index of the Institute for Supply Management, formerly known as the National Association of Purchasing Management, rose to 48.2 in December from 44.5 in November. The index stood at 39.8 in October.
Economists had expected the index to move to 45, according to Thomson Global Markets.
An index reading above 50 indicate expansion of activity and prices in the manufacturing sector, while a figure below 50 denotes contraction.
"While the manufacturing sector continues to decline, the rate of decline has slowed very quickly, giving some hope that recovery may come faster than is generally found in a major downturn," Norbert J. Ore, who assembles the survey for the Tempe, Ariz.-based ISM, said in a statement. "In December, both new orders and production returned to a growth scenario and the trend for most of the indexes is definitely in the right direction," he added. |
