Today the National Association of Purchasing Management [NAPM] released the results of its December survey of selected members.

The December value for the Purchasing Managers' Index [PMI] rose slightly to 47.3 from a November value of 46.5. This level signifies that the manufacturing sector is still contracting, but that the overall economy is growing slowly.

There was further evidence of fading inflation in this month's report. NAPM's Prices-Paid Index fell from 44.5 to 40.8 -- the lowest level since 1991. Furthermore, the NAPM indices of production, new orders, and employment all indicated a slowing down of activity.

On the retail front, the Johnson Redbook Survey reported that seasonally-adjusted retail sales for all of December were down 0.6% from November.

The world's largest toy retailer, Toys R Us, reported that same-store sales during the eight-week period leading up to Christmas rose a little less than 1% from last year. During December, year-over-year same-store sales grew 2%. For the first eleven months of the year Toys R Us comparable store sales were down by 2%.

Byline: Lafferty (MF Merlin)