TEMPE, AZ – Economic activity in the manufacturing sector expanded in December for the 17th consecutive month, with the PMI registering 57%, up 0.4 percentage points, says the Institute for Supply Management.

A reading above 50% indicates the manufacturing economy is generally expanding.

New orders were 60.9%, up 4.3 percentage points, while production, at 60.7%, increased 5.7 points. Inventories fell 4.9 points to 51.8%, and customer inventories dropped 5.5 points to 40%. Backlogs were up 1 percentage point to 47%.

ISM spokesperson Norbert J. Ore said, “The manufacturing sector continued its growth trend, as indicated by this month's report. We saw significant recovery for much of the US manufacturing sector in 2010. The recovery centered on strength in autos, metals, food, machinery, computers and electronics, while those industries tied primarily to housing continue to struggle. Additionally, manufacturers that export have benefitted from both global demand and the weaker dollar. December's strong readings in new orders and production, combined with positive comments from the panel, should create momentum as we go into the first quarter of 2011.”

The overall economy grew for the 20th consecutive month, says the firm.

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