OptionsTrader
01-02-2008, 09:10 AM
http://www.bloomberg.com/apps/news?pid=20601087&sid=aZ1Q6I4NP9aI&refer=home
U.S. ISM Manufacturing Index Fell to 47.7 in December From 50.8
By Courtney Schlisserman
Jan. 2 (Bloomberg) -- Manufacturing in the U.S. unexpectedly contracted last month, showing the housing recession was spreading into other parts of the economy at the end of 2007.
The Institute for Supply Management's manufacturing index dropped to 47.7, the lowest reading since April 2003, from 50.8 the prior month, the Tempe, Arizona-based group said today. Fifty is the dividing line between contraction and expansion.
Manufacturing is near stalling as the housing recession extends beyond building-related industries to affect credit standards and consumer and business spending plans. Slower factory production and company spending will weigh on economic growth.
``There's still not much momentum for manufacturing right now,'' Jonathan Basile, an economist at Credit Suisse Holdings Inc. in New York, said before the report. ``Autos are a drag, housing-related manufacturing is a drag and things are kind of stalled right now overall.''
Economists expected the gauge to fall to 50.5, according to the median of 69 forecasts in a Bloomberg News survey. Estimates ranged from 48.9 to 52.
The group's gauge of prices paid rose to 68 from 67.5. Economists surveyed by Bloomberg had expected the measure to fall to 65.
U.S. ISM Manufacturing Index Fell to 47.7 in December From 50.8
By Courtney Schlisserman
Jan. 2 (Bloomberg) -- Manufacturing in the U.S. unexpectedly contracted last month, showing the housing recession was spreading into other parts of the economy at the end of 2007.
The Institute for Supply Management's manufacturing index dropped to 47.7, the lowest reading since April 2003, from 50.8 the prior month, the Tempe, Arizona-based group said today. Fifty is the dividing line between contraction and expansion.
Manufacturing is near stalling as the housing recession extends beyond building-related industries to affect credit standards and consumer and business spending plans. Slower factory production and company spending will weigh on economic growth.
``There's still not much momentum for manufacturing right now,'' Jonathan Basile, an economist at Credit Suisse Holdings Inc. in New York, said before the report. ``Autos are a drag, housing-related manufacturing is a drag and things are kind of stalled right now overall.''
Economists expected the gauge to fall to 50.5, according to the median of 69 forecasts in a Bloomberg News survey. Estimates ranged from 48.9 to 52.
The group's gauge of prices paid rose to 68 from 67.5. Economists surveyed by Bloomberg had expected the measure to fall to 65.