U.S. Manufacturing Sector Sustains Growth in December

• U.S. Manufacturing Sector Sustains Growth in December

The U.S. manufacturing sector expanded at a faster pace in December, according to the Institute for Supply Management report released on Wednesday.

The Manufacturing Purchasing Managers’ Index stood at 59.7 percent, up from 58.2 percent recorded in November.

Gauge of new orders jumped to 69.4 percent, a 5.4 percent above the 64 percent recorded in the previous month. Meaning, improved domestic spending is aiding manufacturing activities.

Out of the 18 manufacturing industries surveyed 16 reported growth in December in the following order: Machinery; Computer & Electronic Products; Paper Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Primary Metals; Nonmetallic Mineral Products; Petroleum & Coal Products; Plastics & Rubber Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Furniture & Related Products; Transportation Equipment; Chemical Products; Fabricated Metal Products; and Electrical Equipment, Appliances & Components. Two industries reported contraction during the period: Wood Products; and Textile Mills.

However, while Price Index jumped 3.5 percent to 69 percent in the month, employment gauge decline slightly to 57 percent from 59.7 in November, likely due to drop in participation rate during the holiday.

The U.S. dollar halts slide against G10 currencies on Wednesday, trading at $1.2007 against the Euro single currency.