WASHINGTON (Reuters) – U.S. manufacturing activity contracted further in December, but prices paid in the sector fell to a more than two-and-a-half-year low as demand slowed amid rise in interest rates, according to the monthly survey of the Institute for Supply Management (ISM) published on Tuesday.
The ISM manufacturing index fell to 48.4 last month from 49.0 in November, the second consecutive contraction in as many months. Economists polled by Reuters had on average expected a figure of 48.5.
The new orders sub-index fell to 45.2 from 47.2, but that of employment fell from 48.4 to 51.4.
The prices paid component came out at 39.4 against 43.0 the previous month. Apart from the April 2020 plunge, this is the lowest figure since February 2016.
(Report Lucia Mutikani; French version Claude Chendjou, edited by Blandine Hénault)
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