US manufacturing activity rebounds: ISM

Comments | AFP, January, 2007

WASHINGTON (AFP) — US industrial activity rebounded in December following a surprise contraction in the prior month, a survey by the Institute of Supply Management showed. The ISM index of national industrial activity rose to a better-than-expected 51.4 percent in December from 49.5 percent in November.

Most Wall Street analysts had only expected the index reading to rise to 50.0. Any reading under 50 indicates a contraction, so the report suggests the US industrial economy is expanding again after shrinking in November. The prices paid index -- a measure of inflation for companies -- declined to 47.5 percent from 53.5 percent a month earlier, indicating a moderation in inflationary pressures. Norbert Ore, the ISM survey chief, said the survey results showed that the...