Fresh fall in US factory output

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US manufacturing activity fell in December to a 28-year low, the latest figures from the Institute for Supply Management (ISM) have suggested.

US manufacturing output has now contracted for five months in a row, with activity declining to 32.4 in December from 36.2 in October.

Since any figure below 50 indicates a contraction, it is the latest sign of the US economic downturn.

New orders are at the lowest level since records began in January 1948.

'Shutting down capacity'

"Manufacturing activity continued to decline at a rapid rate during the month of December," said Norbert Ore, ISM chairman.

"The decline covers the full breadth of manufacturing industries, as none of the industries in the sector report growth at this time."

The ISM also found that order backlogs have fallen to the lowest level since tracking began in January 1993.

"Manufacturers are reducing inventories and shutting down capacity to offset the slower rate of activity," said Mr Ore.