U.S. manufacturing expansion in December hit two-year high
Washington, Jan. 3 (Xinhua) -- The U.S. manufacturing sector expanded at the fastest pace in two years in December, led by broad-based gains in new orders, production and employment, an Institute for Supply Management report showed Wednesday. The US manufacturing purchasing managers' index rose to 54.7 in December from 53.2 in the previous month, beating economists' expectations of 53.7 and the highest level since December 2014, the report showed. The manufacturing PMI is a barometer of the overall development of the U.S. manufacturing sector. The critical point of the index is 50. A reading above 50 indicates expansion, while a reading below 50 indicates contraction.
The manufacturing new orders index rose 7.2 points to 60.2 in December; The production index rose 4.3 points to 60.3; The employment index increased 0.8 points to 53.1; And the new export orders index rose four points to 56.
By industry, 11 of the surveyed industries expanded, while 6 industries contracted. According to the survey, computer and electronic products, metal products, machinery, plastics and rubber products and other industries all indicated strong business demand and increasing price upward pressure, and are expected to continue to grow business in 2017.
Analysts believe that the US manufacturing sector expanded at the fastest pace in two years in December, which means that the negative impact of the appreciation of the dollar and low oil prices in the past year is gradually fading, and US manufacturing activity is expected to improve steadily in 2017.