The overall manufacturing sector apparently regained some ground in December in the U.S. and China, but the plastics processing industry continued to contract.

U.S.

The American manufacturing sector expanded in December for the fifth consecutive month, according to a Jan.-4 report from the Institute for Supply Management (ISM). The Purchasing Managers Index (PMI), which gauges overall economic activity at factories, climbed to 55.9 percent, the highest since April 2006.

However, plastics and rubber products was among the seven industries still in decline. Factories reported decreases in new orders, production and employment during December. Customers' inventories were lower, and manufacturers' inventories went up. The plastics and rubber industry also reported paying increased prices.

On the flip side, new export orders of plastic and rubber products rose.

China

The China Federation of Logistics & Purchasing (CFLP) said its PMI index for December rose to 56.6 percent, gaining 1.4 percentage points from the previous month.

According to a Jan.-1 report, however, the category of "chemical fiber, rubber and plastic products" registered a below-50-percent PMI.

The PMI readings for production and supplier deliveries were 47 and 49, the lowest since February 2009. New orders also declined.

A PMI reading above 50 percent indicates that the manufacturing economy is generally expanding.