by Calculated Risk on 1/02/2014 10:00:00 AM

The ISM manufacturing index indicated slightly slower expansion in December than in November. The PMI was at 57.0% in December, down from 57.3% in November. The employment index was at 56.9%, up from 56.5%, and the new orders index was at 64.2%, up from 63.6% in November.

From the Institute for Supply Management: December 2013 Manufacturing ISM Report On Business®

Economic activity in the manufacturing sector expanded in December for the seventh consecutive month, and the overall economy grew for the 55th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "The PMI™ registered 57 percent, the second highest reading for the year, just 0.3 percentage point below November's reading of 57.3 percent. The New Orders Index increased in December by 0.6 percentage point to 64.2 percent, which is its highest reading since April 2010 when it registered 65.1 percent. The Employment Index registered 56.9 percent, an increase of 0.4 percentage point compared to November's reading of 56.5 percent. December's employment reading is the highest since June 2011 when the Employment Index registered 59 percent. Comments from the panel generally reflect a solid final month of the year, capping off the second half of 2013, which was characterized by continuous growth and momentum in manufacturing."
emphasis added

Click on graph for larger image.

Here is a long term graph of the ISM manufacturing index.

This was at expectations of 57.0%, and was the 2nd highest reading of 2012. The new orders index was at the highest level since April 2010, and the employment index was at the highest since June 2011. A very solid report.