Factory malaise continues as manufacturing gauge drops to 1-year low

By Reade Pickert | Bloomberg

US manufacturing activity shrank in December by the most since 2024, capping a rough year for American factories.

The Institute for Supply Management’s manufacturing index edged down to 47.9 from 48.2, according to data released Monday. The measure has been below 50, which indicates contraction, for 10 straight months.

The decline in the measure reflected producers drawing down their raw materials inventories at the fastest rate since October 2024.