MW: U.S. manufacturers still struggling, ISM finds
The business of American manufacturers contracted in December for the second straight month as heavy industry ended 2015 on a sour note, a survey of executives found.
The Institute for Supply Management said its manufacturing index slipped to 48.2% last month from 48.6% in November. Economists surveyed by MarketWatch had predicted the gauge would rise to 49.1%.
Readings under 50% indicate more companies are shrinking instead of expanding. The ISM index has posted sub-50% readings for two straight months for the first time during an economic recovery that began in July 2009.
Manufacturers have been hurt by a strong dollar, declining exports and less demand by energy producers amid a sharp plunge in the price of oil.
The employment gauge dropped 3.2 points to 48.1% in December. The ISM’s new-orders index rose slightly to 49.2%, but bookings are running at the lowest pace in more than six years.
