U.S. manufacturing sector’s activity continues to expand in December

U.S. manufacturers saw a widely similar growth in December as was recorded in November, as hinted by just a marginal fall in the IHS Markit index. The flash manufacturing PMI index dropped to 52.5 from November’s 52.6 in the prior month. However, the overall rebound in operating conditions was one of the strongest in 2019.

Growth in the manufacturing sector was underpinned by further growths in output and new orders, with the upturn in the latter remaining strong overall. Although rates of rise dropped in each case, growth remained stronger than those seen earlier in the year. Goods producers continued to expand their workforce figures in the midst of attempts to reduce pressure on capacity. Meanwhile, output expectations rebounded to their strongest since June.

In the meantime, cost burdens rose at the most rapid rate since March as companies noted ongoing pressure from suppliers because of tariffs. Nevertheless, manufacturers increased their factory gate charges at the sharper rate in December.