The overall economy grew for the fifty-fifth straight time, while the manufacturing sector expanded for the seventh consecutive month, the Institute for Supply Management reported Thursday.
According to the ISM's monthly report on business, the ISM index dipped to 57.0 in December from 57.3 in November.
Economists polled by Thomson Reuters predicted the index would fall to 57.0.
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 increased to 53.5 from 52.5. The employment index grew to 56.9 from 56.5 the prior month.
The production index slipped to 62.2 from 62.8, the new orders index rose to 64.2 from 63.6; the supplier deliveries index rose to 54.7 from 53.2; the export orders index fell to 55.0 from 59.5; and the imports index held at 55.0.
The inventories index decreased to 47.0 from 50.5; the customers' inventories index gained to 47.5 from 45.0; and backlog of orders slid to 51.5 from 54.0.
Respondents' comments included:
"Amazingly enough, we are seeing meaningful increases in our sales in nearly all segments and regions." (Apparel, Leather & Allied Products)
"Largest backlog ever. Most orders waiting on customer approvals." (Fabricated Metal Products)
"Orders and price continue to be strong." (Paper Products)
"Continued government spending constraints keeping production volumes low." (Transportation Equipment)
"Good overall business conditions nationally and internationally." (Computer & Electronic Products)
"Markets are sound. We typically see a seasonal 4th quarter slowdown. However, this year not so." (Wood Products)
"Very, very busy." (Furniture & Related Products)
"Sales are strong going into the holiday season." (Food, Beverage & Tobacco Products)
"Construction equipment market continues to be flat with some signs of improvement on the horizon." (Machinery)
"Business conditions remain stable to slightly improving." (Miscellaneous Manufacturing)
