US Manufacturing Activity Shrank by Most Since 2024 in December

Watch on YouTube ↗  |  January 05, 2026 at 15:22  |  2:06  |  Bloomberg Markets
Speakers
Michael McKee — International Economics & Policy Correspondent, Bloomberg

Summary

US factory activity contracted further in December, with the ISM manufacturing index falling to 47.9 from 48.2 and marking a 14-month low. The gauge has been below 50 for 10 consecutive months, while the prices-paid measure held at 58.5. Survey comments highlighted tariffs, interest rates, low oil and commodity prices, and limited housing starts, and the report was described as disappointing with no major factory-sector turnaround expected soon.

  • December ISM manufacturing index fell to 47.9 from 48.2.
  • The index has remained below 50 for 10 straight months.
  • Prices-paid gauge held at 58.5, showing no inflation relief.
  • Production, new orders, and inventories components stayed weak.
  • Companies cited uncertainty, tariffs, rates, low oil, and soft housing starts.
  • The report was described as disappointing with no major turnaround expected soon.
Ideas
Michael McKee International Economics & Policy Correspondent, Bloomberg 0:09
US factory sector weak, no turnaround soon
The December ISM manufacturing report showed the index falling to 47.9 from 48.2, a 14-month low and a 10th straight month below 50, with production, new orders, and inventories weak. Companies cited uncertainty, tariffs, interest rates, low oil and commodity pricing, and limited housing starts. McKee views the report as disappointing and does not expect a major turnaround in the US factory sector anytime soon.
US manufacturing sector HIGH
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This Bloomberg Markets video, published January 05, 2026, features Michael McKee discussing US manufacturing sector. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: Michael McKee  · Tickers: US manufacturing sector