Driven by strong new orders and production numbers, the ISM manufacturing index rose to 59.7 in December, reflecting economic optimism across the manufacturing sector.
The December 2017 Purchasing Manager’s Index (PMI) for manufacturing increased to 59.7%, a 1.5% increase from November, according to the Institute for Supply Management (ISM). The rise was largely driven by new orders (up 5.4% to 69.4) and production increases (up 1.9% to 65.8). Sixteen of the 18 industries included in the index reported growth in December, reflecting economic optimism across the economy and manufacturing industries.
Meanwhile, the Federal Reserve remains optimistic about the economy and raised its 2018 economic growth forecast from 2.1% to 2.5%. These are strong numbers heading into 2018, and as companies navigate the impact of the new tax bill on their businesses, we expect continued optimism over the coming months.