A measure of U.S. factory activity remained stuck in contraction territory for a 14th month at the end of 2023, restrained by weaker orders, Bloomberg News reported. The Institute for Supply Management’s manufacturing gauge edged up 0.7 point to 47.4 last month, helped by a pickup in production, according to data released Wednesday. Readings below 50 indicate contraction, and the figure was near economists’ expectations. The December result extends the longest stretch of shrinking activity since 2000-2001, when the dot-com bubble burst and sparked a recession. Manufacturers were beset last year by high borrowing costs and waning demand for goods that prompted some companies to rethink capital spending plans. While the ISM gauge still shows contraction — and almost all industries shrank during the month — it is holding in a range that suggests activity has stabilized at a weak level. Factory purchasing managers are more upbeat about this year’s prospects as the Federal Reserve has signaled a pivot to lower interest rates.
