US December ISM manufacturing index 47.9 vs 48.4 expected

• Prior was 48.2
• Prices paid 58.5 vs 57.0 expected (58.5 prior)
• Employment 44.9 vs 44.0 prior
• New orders 47.7 vs 47.4 prior

A miserable year for US manufacturing ends with some extra disappointment. This is the lowest reading since November 2024.

The new orders reading was a slight improvement but still deeply in contractionary territory. The promises of tariffs aren’t paying off as companies are reluctant to invest in long-term production given the uncertainty of the legality and staying power of tariffs. Moreover, consumers are unwilling to buy expensive US-built consumer products rather than foreign imports.

On the macro side, the hangover from the post-covid spending spree continues and lower US rates don’t appear to be offering a boost yet. That could change as time goes on but a lot will need to go right to make US manufacturing work again.

This article was written by Adam Button at investinglive.com.