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The numbers: A closely-watched index that measures U.S. manufacturing activity rose 0.7 percentage point to 47.4 in December, according to the Institute for Supply Management on Wednesday.
Economists surveyed by the Wall Street Journal had forecast the index to rise to 47.2%.
Any number below 50% reflects a shrinking economy. Manufacturing has contracted for 14 straight months.
Key details: The key new orders index fell 1.2 percentage points lower to 47.1 in December.
Production rose 1.8 points to 50.3 from the prior month. Employment picked up slightly but remained below 50% threshold.
Prices fell 4.7 percentage points to 45.2%. Inventories were down 0.5 percentage point to 44.3 in December. `
Only one industry – primary metals – reported growth in December, while 16 reported contractions.
Market reaction: Stocks
DJIA
SPX
were lower in early trading while the yield on the 10-year Treasury note
BX:TMUBMUSD10Y
rose to just below 4%.
