US Manufacturing Slump Deepens as Output Falls to 55-Month Low, Inflationary Pressures Spike

U.S. manufacturing slumped further in December, marking six months of contraction, while the service sector surged to multiyear highs.

An employee works on an assembly line at startup Rivian Automotive's electric vehicle factory in Normal, Ill., on April 11, 2022. Reuters/Kamil Krzaczynski/File Photo

U.S. manufacturing fell deeper into recession territory at the beginning of December, marking the sixth consecutive month of contraction in America’s goods-producing sector as factory output fell to its lowest level in 55 months while input-cost inflation jumped to the highest in just more than two years, according to S&P Global.

The S&P Global Flash U.S. PMI report, released on Dec. 16, shows that business is booming in the service sector, but manufacturing deepened its decline.