ISM Manufacturing Index Misses Forecast in December, Prices Remain Sticky

December ISM Manufacturing Data

• 📉 The ISM manufacturing index for December came in at 47.9, missing the forecast of around 48.5.
• 📌 This marks the 10th consecutive month the index has been below 50, indicating contraction in the manufacturing sector.
• ⚠️ The current reading is the lowest since October 2024.

Prices Paid and New Orders

• 📊 Prices paid remained sticky at 58.5, unchanged from the previous month and the highest since September 2025.
• 📦 New orders registered at 47.7, close to expectations but in contraction territory and the weakest since October 2024.
• 📈 Despite the current low, new orders are the strongest since October, but have not been above 50 since August of this year.

Employment and Interest Rates

• 🧑‍💼 The ISM employment index came in at 44.9, below the 50 threshold but slightly higher than the previous month's 44.0.
• 🚀 This employment reading is the best since October, with 11 consecutive readings under 50.
• 📈 Interest rates are down slightly from elevated levels, with the 10-year Treasury testing the top of its range around 4.20 and backing away.