By Robert Hughes
The Institute for Supply Management's manufacturing PMI composite index fell to a reading of 47.2 from 48.1 in November. For this index, 50 is neutral, with readings above 50 suggesting expansion and readings below 50 suggesting contraction in manufacturing. Historically, readings above 42.9 have suggested expansion of the overall economy. The December result is the 128th consecutive month above 42.9 but the fifth month below 50, suggesting contraction in manufacturing.
The majority of the sub-indexes were below 50 in December and remained below neutral. Among the key components of the manufacturing index,