Sustained, slower improvement in US manufacturing operating conditions

The seasonally-adjusted US manufacturing PMI recorded 51.8 in December. That was down from 52.2 in November and signaled the weakest expansion of the manufacturing economy in the current five-month growth sequence.

December’s S&P Global PMI data indicated a sustained, albeit slower, improvement in US manufacturing sector operating conditions.
The seasonally-adjusted manufacturing PMI was 51.8 in December.
Weaker growth resulted from a mild contraction in new order intakes.
Global sales continued to fall, in part linked to tariffs.
Confidence in the outlook remained positive despite easing slightly since November.

Weaker growth emanated from a mild contraction in new order intakes, the first in a year.

International sales continued to fall, in part linked to tariffs, which also continued to push up operating expenses at an elevated pace.

Although remaining historically elevated, both input and output prices rose at their slowest rates for 11 months.

US firms reported that employment growth was sustained into the end of 2025, with job creation reaching the most pronounced since August.

Confidence in the outlook also remained positive despite easing slightly since November.

Exports were also a source of demand weakness, falling for the seventh successive month.

Tariffs were reported to have weighed on export sales, especially to Canada. A reduction in demand led to weaker output gains in December, the softest in three months.

Amid a reduction in sales, production increased sufficiently for firms to continued adding to their stocks of finished goods for the fifth month in a row, though the rate of accumulation moderated noticeably from November’s survey record.

Work outstanding declined for the fourth month in a row during December, partly due to an expansion in labour capacity.

Meanwhile, difficulties receiving inputs due to supplier capacity constraints were noted to have driven average lead times higher in December. The latest lengthening of lead times was the most marked in seven months.

Fibre2Fashion News Desk (DS)