The overall economy grew for the sixty-seventh straight time, while the manufacturing sector expanded for the nineteenth consecutive month, the Institute for Supply Management reported Friday.
According to the ISM's monthly report on business, the ISM index slid to 55.5 in December from 58.7 in November.
Economists polled by Thomson Reuters predicted the index would slip to 57.7.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion. A reading of 50 shows the sector was unchanged in the month.
The prices paid index dropped to 38.5 from 44.5. The employment index grew to 56.8 from 54.9.
The production index slipped to 58.8 from 64.4, the new orders index fell to 57.3 from 66.0; the supplier deliveries index climbed to 59.3 from 56.8; the export orders index decreased to 52.0 from 55.0; and the imports index dipped to 55.0 from 56.0.
The inventories index decreased to 45.5 from 51.5; the customers' inventories index slid to 44.5 from 50.0; and backlog of orders slumped to 52.5 from 55.0.
Respondents' comments included:
"Retail sales this holiday season are shaping up to be much improved over last year." (Food, Beverage & Tobacco Products)
"West Coast port issues have greatly impacted our incoming materials. We are air freighting many parts from Japan and Asia to support production while parts sit at the dock." (Fabricated Metal Products)
"Class 8 trucks and RV business is very strong." (Transportation Equipment)
"Most commodities feeling downward price pressure from crude. Rain in California driving demand for repair products through the roof." (Petroleum & Coal Products)
"Business has not slowed as of yet, but outlook is that business should start slowing, energy market related." (Computer & Electronic Products)
"Collapse of oil prices is supporting negotiations for significantly lower petrochemical related material prices. Sales are slowing down as buyers reduce inventory in anticipation of lower prices." (Chemical Products)
"West Coast ports are creating delays for imported goods." (Textile Mills)
"Energy prices falling are a blessing and a curse for us. We will experience downside as projects are canceled by energy companies, but suspect manufacturing in the US will improve driving upside in that space." (Apparel, Leather & Allied Products)
"The West Coast ports slow-down is really affecting deliveries of our Asian purchases." (Machinery)
"Currently in slow season until new year." (Primary Metals)
