WASHINGTON (Reuters) – US production fell in December as demand for goods fell, but supply restrictions began to ease, and early 2020 saw the sharpest drop in the price of inputs since the epidemic hit economic activity.
The Supply Management Institute (ISM) said on Tuesday that its national manufacturing performance index fell to 58.7 last month. This is the lowest result since January, after 61.1 in November.
Measurements above 50 indicate an expansion of production, which is 11.9% of the US economy. According to a Reuters poll, economists expect the index to fall to 60.1.
The ISM rating of supplier deliveries fell to 64.9 from 72.2 in November. A reading above 50% indicates that delivery to factories is low.
Early signs of improvement in supply chains suggest that industrial gate inflation will soon begin to ease.
The amount of prices paid by the industry fell to 68.2 last month, the lowest level since November 2020, from 82.4 last November. The fall is the biggest since March 2020, when forced shutdowns of non-essential applications were adopted to prevent the first wave of corona virus infections.
(Reporting de Lucia Muttigani)