Purchasing Manager's Index December 2015
PMI rose to 56.0 in December – A solid finish to the year
- The PMI rose from 54.9 to 56.0 in December and finished the year at the highest level since March 2014. Many subcomponents also reached highs for the year.
- The monthly gain in the PMI was driven by the sub-index for new orders, which rose to 57.8. Underlying demand is good with a continued rise in orders from domestic and export markets. Order backlog estimates also climbed in December. Improved demand may now have begun to trickle down to suppliers, since delivery times have increased. On the other hand, prices of suppliers’ commodity and intermediate goods continued to fall on a broad basis. The price index for December dropped to 42.7.
- The sub-index for production was 60.5, an increase of 1.2 points from November. The quarterly average was higher in October-December than in July-September. Production plans for coming quarters continue to signal optimism with a reading of 62.6 for December (64.9 in November).
- The sub-index for employment fell to 53.2 in December from 54.6 in November. Employment, together with inventories of purchased materials, lowered the PMI by 0.5 point. The fact that hiring needs have risen for sixteen months and accelerated during the fourth quarter is positive, however.
PMI December 2015