PMI Index Records Eighth Straight Month of Growth as 2020 Finishes Strong
TEMPE, AZ—The monthly Institute for Supply Management’s (ISM) PMI Index jumped to 60.7 percent in December, marking an eight-month streak of recovery after collapsing in April at the start of the COVID-19 pandemic.
Sharp increases in new orders and production fueled the jump of 3.2 percentage points from the 57.5 percent reading in November. From its low point of 41.5 percent in the April reading, which ended 12 years of economic growth, the PMI has steadily recovered. The big jump was a 9.5 percentage point increase in June from 43.1 percent to 52.5 percent, bringing the index back above the 50 percent threshold for growth and halting three months of decline. The 60.7 percent level in December indicates 20 percent growth over the baseline for manufacturing sector growth.