The PMI hit 49.3% last month, up 0.9 percentage points from November. New orders crossed the 50.0 economic growth threshold reading to hit 52.5%, while production reached 50.3%.
The boost in demand and output is helping the industry gear up for growth in 2025 after a rocky year that failed to bring much of an economic recovery.
“2024 has been quite the year, it started out real dynamic, and it’s ending pretty dynamic,” Timothy Fiore, chair of the ISM’s manufacturing business survey committee, said on a media call Friday. “I think we’ve got the new growth profile commencing in November, December. I think we’re starting now and we’ll see where this goes.”
Seven manufacturing industries reported growth in December: primary metals, electrical equipment, appliances and components, wood products, furniture and related products, paper products, miscellaneous manufacturing, and plastics and rubber products.
The possibility of new tariff hikes is weighing heavily on manufacturers’ minds – 40% of ISM’s survey respondent comments discussed concerns about the impending trade policy change, Fiore said. Many respondents discussed plans for dual sourcing and identifying suppliers that would be unaffected by tariff hikes.
Despite these concerns, Fiore said it’s unlikely any tariff hikes would heavily impact the industry’s performance until Q2.
S&P Global’s index didn’t end the year on as positive a note, with the PMI coming in at 49.4 in December, down slightly from 49.7 in November. The drop was driven by a fall in demand and production, though industry optimism remains up ahead of the change in administration.
“Many firms are generally anticipating that business will pick up in the New Year, with respondents pinning hopes on expectations that the new administration will loosen regulations, reduce tax burdens and boost demand for U.S.-made goods via tariffs,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a statement.
Pour lire l'article complet : Demand ticks up as manufacturers pin hopes on Trump administration: PMI | Manufacturing Dive
