Manufacturing index at 28-year low
Purchasing managers' report shows that December activity is contracting, remains recessionary.
NEW YORK (CNNMoney.com) -- A key index of the nation's manufacturing activity fell to a 28-year low in December, according to a report released Friday.
The Institute for Supply Management, a purchasing management group based in Tempe, Ariz., said its manufacturing index was 32.4 for December. That's the lowest reading since June 1980, when it stood at 30.3.
An index of 35.4 was expected for December, according to a consensus of economist opinions provided by Briefing.com. That's down from November, when the index was 36.2.
"Manufacturing activity continued to decline at a rapid rate during the month of December," said Norbert Ore, chair of the ISM's Manufacturing Business Survey Committee, in a press release. "The decline covers the full breadth of manufacturing industries, as none of the industries in the sector report growth at this time."
Manufacturing activity failed to grow for the fifth consecutive month, according to the ISM, while the overall economy contracted for the third month running.
An index reading above 50 indicates growth, while a reading below 50 indicates a slowdown. A reading below 41 is typically associated with recession in the broader economy.
The ISM report is a national survey of purchasing managers in the manufacturing sector. The monthly survey tracks new orders, production, employment, deliveries, inventories and other aspects of the sector.
New orders have experienced the lengthiest contraction thus far - 13 months - and plunged to 22.7 in December from 27.9 the prior month. Ore said this is the lowest figure since January 1948.
Production fell to 25.5 from 31.5, in its fourth month of declines. Employment fell to 29.9 from 34.2, in its fifth month of declines. 
