The US manufacturing economy continued its recovery in December, but labor difficulties remain, the Institute for Supply Management reported today. Its Manufacturing PMI measure of economic activity in US manufacturing rose to a reading of 60.7% in December from 57.5 in November. Readings above 50% indicate expansion, and the jump from December indicates expansion at a faster pace.
“Survey committee members reported that their companies and suppliers continue to operate in reconfigured factories, but absenteeism, short-term shutdowns to sanitize facilities and difficulties in returning and hiring workers are causing strains that are limiting manufacturing growth potential,” said Timothy Fiore, chair of the ISM’s Manufacturing Business Survey Committee.
Fiore said the 60.7% reading for the Manufacturing PMI corresponds to a 5.2% increase in real gross domestic product on an annualized basis.
Data for the ISM’s Manufacturing PMI come from purchasing and supply executives across the US.
Read the report here.