Overall U.S. manufacturing economic activity expanded and the economy grew overall in December 2011, but the Electrical Equipment, Appliances & Components sector was one manufacturing sector that reported contraction, according to the Manufacturing ISM Report On Business. The Appliance segment did see an increase in New Orders and Production in December. It was also one of the manufacturing segments that reported paying less for supplied materials and components.
The report said manufacturing overall grew for the 29 month running and the economy grew for the 31st month. The overall PMI was grew from 52.7% in November 2011 to 53.9% in December. A PMI above 50% means manufacturing is generally expanding while less than 50% means it is contracting. The group said a PMI above 42.5%, over time, generally indicates expansion in economy overall.
"The New Orders Index increased 0.9 percentage point from November to 57.6%, reflecting the third consecutive month of growth after three months of contraction," said Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management Manufacturing Business Survey Committee. "Prices of raw materials continued to decrease for the third consecutive month, with the Prices Index registering 47.5%, which is 2.5 percentage points higher than the November reading of 45%. Manufacturing is finishing out the year on a positive note, with new orders, production and employment all growing in December at faster rates than in November, and with an optimistic view toward the beginning of 2012 as reflected by the panel in this month's survey."
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