ECONOMY

U.S. manufacturing weak in December

Manufacturing in the United States contracted in December at the fastest pace in more than six years as factories, hobbled by sluggish global growth, cut staff at the end of 2015.

The Institute for Supply Management’s index declined to 48.2, the weakest since June 2009, from 48.6 a month earlier, the group’s report showed Monday. Readings lower than 50 indicate contraction. The median forecast in a Bloomberg survey of 72 economists was 49.

Struggling overseas demand and declines in commodity prices that are hurting investment in energy and agriculture continue to limit orders for American manufacturers. At the same time, robust domestic growth buoyed by labor-market momentum and wage gains are supporting consumers’ spending power and preventing U.S. factory activity from slowing further.

“As the impact of the strong dollar and weak global demand continues to play out, it’s no surprise that we’re seeing these kinds of sub-par prints in manufacturing,” said Millan Mulraine, deputy head of U.S. research and strategy at TD Securities in New York. “As low energy prices continue to have an impact on the energy sector, then we’re likely to see a weak showing in manufacturing for a long time.”

— Bloomberg News

EXECUTIVES

CEO Mary Barra named GM chairman

General Motors’ board elected chief executive Mary Barra as the company’s chairman, effective immediately. Barra became the biggest U.S. automaker’s first female CEO almost two years ago.

Barra, who has spent her entire career at the Detroit-based company, succeeds Tim Solso, who will remain on the board as lead independent director, the company said in a statement.

Much of Barra’s first year as the company’s top executive was consumed by the ignition-switch defect that has been linked to 124 deaths. But GM also made a number of strategic decisions, such as pulling out of Russia and ending Chevrolet operations in Europe. Earlier Monday, GM announced that it will invest $500 million in ride-hailing

start-up Lyft.

“At a time of unprecedented industry change, the board concluded it is in the best interests of the company to combine the roles of chair and CEO in order to drive the most efficient execution of our plan and vision for the future,” Solso said in the statement. “With GM consistently delivering on its targets and on track to generate significant value for its shareholders, this is the right time for Mary to assume this role.”

— Bloomberg News

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