The pace of manufacturing slowed to a six-month low in December as orders and production dropped.
The Institute for Supply Management’s manufacturing index fell to 55.5 last month, the lowest level since June, from 58.7 in November, reflecting expansion despite the slowdown, the group said on Friday.
{mosads}Any reading over 50 reflects a growing sector.
New orders fell to 57.3 from 66 while production dropped to 58.8 from 64.4.
Some manufacturers said a labor dispute at West Coast ports had slowed their ability to get raw materials while others said that the drop in oil prices have mainly helped their business.
Meanwhile, employment increased to 56.8 from 54.9, a good sign for the labor market in a month that has been through a few rough years when it comes to job creation.
The December jobs report is due out in a week.
Factory activity had accelerated through the fall to nearly three-year highs and had a decent finish to the year as consumer spending helps boost growth across the economy.
Many economists expect the economy to expand at a faster pace this year.