ISM Manufacturing Index Falls to 28-Year Low

U.S. manufacturing activity contracted at the fastest pace in 28 years in December, the Institute for Supply Management said.

ISM’s monthly factory services index fell to a reading of 32.4, from 36.2 in November. Figures of more than 50 indicate expansion, while below that shows contraction.

The figure was the lowest since 1980, while economists had forecast a drop to 35.4, Bloomberg reported.

The survey’s production index fell 6 points to 25.5, while new orders dropped 5.2 points, to 22.7.

The factory index measures manufacturing components of the economy. The trucking industry relies on factory orders and shipments for much of its business.