Highlights
The manufacturing sector is contracting at a severe and accelerating rate, indicated by the 32.4 reading for the ISM's manufacturing index -- one of the very lowest readings in 60 years of data. The December report is unfortunately filled with record lows or near record lows. One of the most worrisome is an 18.0 reading for prices paid, a low last exceeded back in 1949. Price contraction reflects a combination of collapsing fuel costs and a collapse in demand as businesses destock. The inventories index fell for a second straight month, down 3 tenths to 38.8.

Employment is especially depressing, down more than 4 points to 29.9. New orders and backlog orders are severely depressed in the low 20s, readings that point to deepening trouble ahead. Financial markets showed surprisingly limited initial reaction to the results.

Market Consensus before announcement
The Institute for Supply Management's manufacturing index contracted further in November as the headline index fell nearly 3 points to 36.2. The reading is the lowest since 1980 recession. Key components in the survey showed greater weakness than the headline index including a 31.5 level for the production index that matched the record low in May 1980. The new orders index at 27.9 is at its lowest since the early 1980s. Perhaps the most stunning reading of all, prices paid was 25.5 - down 11.5 points in the month and the lowest reading since early data in 1949.

ISM manufacturing index Consensus Forecast for December 08: 35.5
Range: 32.0 to 40.0

2009 Release Schedule

Released On: 1/2 2/2 3/2 4/1 5/1 6/1 7/1 8/3 9/1 10/1 11/2 12/1 Release For: Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov