U.S. Manufacturing Contraction Deepens as PMI Falls to 47.9

U.S.

manufacturing activity unexpectedly weakened in December, with the Manufacturing Purchasing Managers’ Index (PMI) falling to 47.9, its lowest level since early last year.

A reading below 50 indicates contraction, confirming that the Manufacturing PMI remains in negative territory despite forecasts of a modest rebound.

Sub-indices showed declines in inventories and production, while new orders edged slightly higher but stayed in contraction.

Employment also remained below growth levels, highlighting continued caution and uncertainty across the industrial sector.

Meanwhile, the prices index held at relatively elevated levels, signaling persistent cost pressures despite slower activity.

Analysts suggest the continued slide in the Manufacturing PMI underscores the fading of a short-lived recovery and raises concerns over the outlook for U.S.

industrial growth.