However, employment remains a weak spot, with the Employment Index dropping to 45.3%, reflecting continued workforce reductions as companies align for 2025. This marks a 2.8 percentage point decline from November’s 48.1%. Meanwhile, the Backlog of Orders Index rose to 45.9%, up 4.1 percentage points, although it remains in contraction.
Prices and Supply Chain Metrics Reflect Stability
The Prices Index increased to 52.5%, up from 50.3%, suggesting mild price growth. Supplier deliveries slightly slowed, registering 50.1%, indicating a marginally tighter supply chain, often seen as a sign of strengthening demand. Inventory levels improved modestly, rising to 48.4% from 48.1% but staying below the expansion threshold.
Export activity showed improvement, with the New Export Orders Index reaching 50%, up 1.3 percentage points from November. Imports, while still contracting, moved closer to stability at 49.7%.
