US manufacturing PMI falls to its lowest level in 31 months

In the US, the manufacturing Purchasing Managers’ Index (PMI) fell 1.5 points month-on-month to 46.2 in December, the lowest level since May 2020.

S&P Global has released the main US Manufacturing, Services and Composite PMI data for December.

Consequently, the manufacturing PMI decreased 1.5 points to 46.2 in December compared to the previous month.

The index, which missed market expectations, was expected to gain 47.7 in this period. The index, which points to the largest contraction in the manufacturing sector since May 2020, was 47.7 in November.

SERVICE PMI ALSO BELOW EXPECTATIONS

The US service sector PMI also decreased 1.8 points to 44.4 in December compared to the previous month.

Contrary to market expectations, the index, which fell to its lowest level in 4 months, was expected to take the value of 46.8. The index, which shows that the contraction in the services sector continues, was 46.2 in November.

The composite PMI covering the manufacturing and service sectors, on the other hand, decreased 1.8 points on a monthly basis to 44.6 in December.

The composite PMI, which indicates that the contraction of economic activity continues rapidly, falling to the lowest level in 4 months, as in the services sector, reached 46.4 in November.

‘RISKS OF RESESSION INCREASE’

S&P Global chief economist Chris Williamson, whose views were included in the statement, said business conditions worsened as the end of 2022 neared.

“The data shows that the Fed’s rate hikes are having the desired effect on inflation, but the economic cost is rising and recession risks are rising as a result,” Williamson said. he performed the assessment of it.

A PMI value of 50 or above indicates expansion in the sector, and below 50 indicates contraction. (AA)