US factory sector slowing: ISM index

0 Comments | AFP, January, 2006

WASHINGTON (AFP) — Factory activity in the United States decelerated in December, the Institute for Supply Management reported.

The ISM manufacturing index dipped to 54.2 percent from 58.1 in November. Economists expected a smaller decline to 57.0 in December.

"In December, we saw a decline in the rate of growth of both new orders and production, but both indexes are at levels that support economic growth," ISM survey chief Norbert Ore said.

"We saw a significant slowing in the upward pricing spiral that has been a source of continuing concern for manufacturers. A strong fourth quarter should carry significant momentum forward into 2006," he said.

The ISM industrial index, previously known as the purchasing managers' index, has now been above the...