The prices subindex had decreased to 68.2 (-14.2) which was a significant drop because of easing in the supply disruptions and this was reflected by the drop in the supplier’s deliveries at 64.9 (-7.3) as a lower number indicated faster deliveries.
The producers reduced their inventories (54.7, -2.1) stockpile because they saw reductions in new order (60.4, -1.1), new export order (53.6, -0.4) and new local order (Est’d -0.7). Consequently, the producers increased their imports (53.8, +1.2) because of easing problems in supply issues such as freight costs and shipments.
The producers increased their employment (54.2, +0.9) to maintain a slightly lower production (59.2, -2.3) to increase their low customers’ inventories (31.7, +6.6). Therefore, the backlog of order increased to 62.8 (+0.9) as the producers couldn’t fulfill all the new orders due to their low customers’ inventories.
All the above factors caused the PMI to decrease to 58.7 (-2.4) in December 2021 and this decline was being projected in our earlier PMI analysis.
http://sg-stock.blogspot.com/2021/12/ism-pmi-november-indicated-that-us.html
In conclusion, the December PMI indicated that the US economic growth was already over the peak and would experience a continual diminishing marginal GDP growth in the future because of the reduction in the US household saving rate.
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