US manufacturing growth slows in December

US manufacturing closed 2005 on a soft note as a key gauge of factory activity showed slower growth for December, according to…

US manufacturing closed 2005 on a soft note as a key gauge of factory activity showed slower growth for December, according to data published today.

The Institute for Supply Management said its index of national factory activity fell to 54.2 in December, its lowest since June. That was down from 58.1 in November and short of economists' median forecast for an easing to 57.5.

The index has held above 50, a reading denoting expansion in the sector, for about three years.

The ISM's employment gauge eased to 52.7 from 56.6, while new orders, a signal of future growth, dropped to 55.5 from 59.8. Prices paid declined to 63.0 from 74.0.