The last entry on The Capital Spectator for the year, and the first look at how manufacturing activity fared in 2012’s final month in the ISM report later this week. The stakes are higher than usual, as the nation braces for blowback from the still-unresolved fiscal cliff mess. Much like the political dialog in Washington these days, the December update on the ISM Manufacturing Index (scheduled for release on Wednesday, January 2) is expected to dance on the edge of a knife and remain precariously poised on or near the neutral 50 mark. The Capital Spectator’s average econometric forecast anticipates a reading of 49.9, a statistical hair into the terrain of contraction, or moderately below the relatively upbeat 50-plus predictions from economists generally via consensus survey data.