US Manufacturing PMI Falls to 51.8 in December, Missing Estimates
The S&P Global Manufacturing Purchasing Managers' Index (PMI) for the US declined to 51.8 in December, down from 52.2 in the previous month and below the market expectation of 52.1. Despite the decrease, the index remains above the 50-point threshold, indicating continued expansion in the manufacturing sector, albeit at a slower pace.
*this image is generated using AI for illustrative purposes only.
The US manufacturing sector showed signs of deceleration in December, with the S&P Global Manufacturing Purchasing Managers' Index (PMI) declining to 51.8. This represents a notable drop from the previous month's reading and fell short of market expectations.
December PMI Performance
The latest PMI data reveals a softening in manufacturing activity during December. The index came in below both historical performance and analyst projections, signaling a moderation in the sector's growth momentum.
| Metric | December Reading | Previous Month | Estimate |
|---|---|---|---|
| S&P Global Manufacturing PMI | 51.80 | 52.20 | 52.10 |
| Month-over-Month Change | -0.40 | - | - |
| Estimate Miss | -0.30 | - | - |
Market Context
While the December reading of 51.8 represents a decline from previous levels, it remains above the crucial 50-point threshold. PMI readings above 50 indicate expansion in manufacturing activity, while readings below 50 suggest contraction. The current level continues to reflect growth in the US manufacturing sector, albeit at a slower pace than in recent months.
The miss against economist estimates of 52.1 suggests that manufacturing activity may be facing headwinds that were not fully anticipated by market analysts. The 0.4-point decline from the previous reading of 52.2 indicates a measurable deceleration in sector momentum during December.
Despite the decline, it's important to note that the manufacturing PMI remains in expansion territory. The reading of 51.8, while lower than expected, still signifies growth in the manufacturing sector, as it stands above the 50-point expansion threshold.
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