The U.S. factory sector contracted for the fifth consecutive month in December as trade tensions continued to pressure manufacturers.
The Institute for Supply Management said on Friday its manufacturing index fell to 47.2 in December from 48.1 in November. Readings above 50 indicate activity is expanding across the manufacturing sector, while those below 50 signal contraction.
Economists surveyed by The Wall Street Journal had expected a reading of 49.0.
Friday’s data, compiled from a monthly survey of purchasing and supply executives across the U.S., was the lowest reading since June 2009.
“Global trade remains the most significant cross-industry issue, but there are signs that several industry sectors will improve as a result of the phase-one trade agreement between the U.S. and China,” Tim Fiore, who oversees the ISM survey of factory purchasing and supply managers, said in a statement.