US manufacturing PMI ends 2020 at six-year peak, says IHS Markit

by   |  VIEW 597

US manufacturing PMI ends 2020 at six-year peak, says IHS Markit

IHS Markit’s survey report on US manufacturing PMI (Purchasing Managers’ Index) for a pandemic-hurt 2020 released earlier on Monday, had orchaestrated a cerulean comely as US manufacturing activities had stepped up at its steepest pace in more than six years last month, sharpening up a recovery in the US factory sector which nearly had stalled in April last year due to a global-scale pandemic outbreak.

Nonetheless, although a strong, yet strange rebound in IHS Markit’s survey data for manufacturing PMI (Purchasing Managers’ Index) in December remained uneven in a rocky 2020 with consumer goods witnessing a plunge in orders alongside a limited consumer spending, the extent of thrive in US factory sector had flabbergasted many amid an upended disruption in supply chain networks, suggesting a strong demand for machinery and equipment in the latest flashpoint of an economic recovery on sight.

Besides, IHS Markit’s manufacturing PMI data for December, which has paralleled a potential sign of improvement in business investments, had revealed that the US manufacturing PMI rose to a fresh six-year peak of 57.1 in December, up from 56.7 registered in November.

Notably, a reading above 50.0 indicates growth, while a below-50 figure marks up a contraction in a sector.

US Manufacturing PMI hits highest since Sept. 2014 in December

Aside from that, according to IHS Markit, December’s gain in US manufacturing PMI had marked up its eighth straight month of uprising since having been bottomed to its lowest in more than a decade during the early days of the pandemic outbreak in April.

Meanwhile, adding that a topline improvement in US manufacturing PMI index last month was largely propelled by a strong pricing environment with output pricing index rising to its highest since May 2011, IHS Markit said in a statement earlier in the day, “Amid a significant deterioration in vendor performance, cost burdens and selling prices soared, as firms sought to partially pass on higher input prices.

Output expectations moderated slightly, however, as the post-election spike eased and virus cases surged once again”.