A measure of U.S. factory activity advanced in December for a second consecutive month as orders and production picked up, suggesting the cloud over manufacturing may be starting to lift, Bloomberg reports.
The Institute for Supply Management’s manufacturing gauge rose almost a point to 49.3, the highest level since March, according to data released Friday. While still below 50 and indicating activity continues to shrink, the index was firmer than all but one estimate in a Bloomberg survey of economists.
The group’s measure of new orders rose more than 2 points to the strongest reading since the start of last year and matching the highest since May 2022. The pickup in demand helped generate the first month of expanding production since May.
Along with the advance in factory activity, the survey also revealed more producers are reducing staffing levels at a faster rate. The employment index fell almost 3 points, the most since July, to 45.3 in December.
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