Purchasers Say Growth Slowed In December --- Survey Finds Employment, Orders and Output Fell; Price Decline Continued
NEW YORK -- The economy continued to grow in December, but at a slower pace, a monthly survey by purchasing agents indicated.</br></br>The National Association of Purchasing Management said its members reported a decline in new orders, production and employment in December. For the 13th consecutive month, prices continued to fall.</br></br>"Traditionally the industrial economy slows in December, so what we are seeing isn't unusual," said Robert J. Bretz, chairman of the group's business survey committee and purchasing director at Pitney Bowes Inc. "However, the fourth quarter and the year were a pleasant surprise. The continued low level of price increases also indicates inflation isn't on the horizon."</br></br>The report, based on a survey of purchasing managers at 250 industrial companies, indicates whether various indicators of the economy are better, the same, or worse than the previous month.</br></br>The survey's composite index, on a seasonally adjusted basis, declined to 51.1% in December from 53.3% in November, the first drop in three months. But it was the fourth consecutive measure above 50%, a sign that the economy is expanding. A reading below 50% indicates the economy is in a declining phase.