US Manufacturing Still Spinning Its Wheels, Fed Data Show

Nearly 33 percent of companies surveyed reported decreases in general activity in December, up from 23 percent the previous month.

A worker handles 155 mm shells at the Scranton Army Ammunition Plant in Scranton, Pa., on April 16. Charly Triballeau/AFP via Getty Images

The U.S. manufacturing sector continues to face significant challenges, as recent data from regional Federal Reserve banks and national industrial production indicators paint a bleak picture of America’s factories.

The Federal Reserve Bank of Philadelphia’s manufacturing index declined sharply in December, marking the lowest level in nearly two years, according to data released on Dec. 19. The index fell to -16.4, down from -5.5 in November and the lowest since April 2023. It also missed economists’ expectations for a positive reading of 3.0.