TEMPE, AZ – Manufacturing slowed in December, with the PMI dropping 3.1 percentage points to 47.7%, says the Institute for Supply Management. New orders decreased to 45.7%, down 6.9 points, while production dropped 4.6 points to 47.3%.
Inventories were down slightly to 4.5%, a decrease of 1.4 points, and customer inventories were up 2.5 points in December, to 51.5%. Order backlogs were also up, reaching 43%, an increase of 1.5 points.
“The manufacturing sector failed to grow in December ending 10 consecutive months of growth. The recent trend has been toward slower growth. However, December was apparently a very tough month as new orders, production and employment were all below the breakeven mark of 50%. Industries close to the housing market appear to be struggling more than others, and those involved in exports seem to be doing better. Slower demand appears to be more of a problem than excessive inventories based on the respondents' comments,” said ISM spokesman Norbert J. Ore.
The overall economy grew for the 74th consecutive month, says ISM.
BEIJING -- Microsoft's attempt to invest in a Chinese electronics manufacturer was blocked by the China Security Regulatory Commission as accusations of insider trading abound.
HELSINKI -- Elcoteq will restructure its operations, selling certain underperforming plants and improving its materials management in hopes of cutting $101.5 million to $116 million from its annual operating costs, the EMS firm said Thursday.
YANTAI, CHINA -- Foxconn this week claimed a fire on its Yantai PWB campus has not disrupted production.
However, a Commercial Times report claimed the fire destroyed more than one-third of the Yantai plant's capacity, a reported monthly output of 2.6 million sq. ft.
SAN
FRANCISCO – Flextronics and Solectron are being
sued for allegedly violating federal and state labor laws governing overtime
pay. The suit alleges the EMS companies paid employees by their shift time,
rather than for time actually worked.
SAN JOSE – “A year
that started with great promise of bipartisan action to enhance
American competitiveness in the global economy appears about to end
with no significant action on any of the key elements,” said
Semiconductor Industry Association president George Scalise. “To
say that we are keenly disappointed would be a huge understatement.”