Economic activity in the U.S. manufacturing sector contracted in November following two months of modest expansion, while the overall economy grew for the 42nd consecutive month, according to the nation's supply executives in the latest Manufacturing ISM (Institute for Supply Management) Report on Business®. The report was issued this week by Bradley J. Holcomb, CPSM, CPSD, chair of the ISM Manufacturing Business Survey Committee, Tempe, Ariz., USA.
"The PMI registered 49.5%, a decrease of 2.2 percentage points from October's reading of 51.7%, indicating contraction in manufacturing for the fourth time in the past six months. This month's PMI reading reflects the lowest level since July 2009 when the PMI registered 49.2%. The New Orders Index registered 50.3%, a decrease of 3.9 percentage points from October, indicating growth in new orders for the third consecutive month. The Production Index registered 53.7%, an increase of 1.3 percentage points, indicating growth in production for the second consecutive month. The Employment Index registered 48.4%, a decrease of 3.7 percentage points, which is the index's lowest reading since September 2009 when the Employment Index registered 47.8%.
Comments from the panel this month generally indicate that the second half of the year continues to show a slowdown in demand. Respondents also express concern over how and when the fiscal cliff issue will be resolved.
Of the 18 manufacturing industries, six are reporting growth in November in the following order: Petroleum and Coal Products; Paper Products; Furniture and Related Products; Electrical Equipment, Appliances and Components; Food, Beverage and Tobacco Products; and Computer and Electronic Products. The 11 industries reporting contraction in November (in order) are: Apparel, Leather, and Allied Products; Wood Products; Primary Metals; Transportation Equipment; Chemical Products; Fabricated Metal Products; Miscellaneous Manufacturing; Nonmetallic Mineral Products; Plastics and Rubber Products; Machinery; and Printing and Related Support Activities.
The seven industries reporting growth in new orders in November (in order) are: Petroleum and Coal Products; Paper Products; Plastics and Rubber Products; Machinery; Computer and Electronic Products; Electrical Equipment, Appliances, and Components; and Furniture and Related Products. The nine industries reporting a decrease in new orders during November (in order) are: Nonmetallic Mineral Products; Apparel, Leather, and Allied Products; Primary Metals; Chemical Products; Transportation Equipment; Fabricated Metal Products; Food, Beverage, and Tobacco Products; Miscellaneous Manufacturing; and Printing and Related Support Activities.
The eight industries reporting growth in production during the month of November (in order) are: Wood Products; Electrical Equipment, Appliances, and Components; Paper Products; Food, Beverage, and Tobacco Products; Furniture, and Related Products; Miscellaneous Manufacturing; Computer and Electronic Products; and Fabricated Metal Products. The seven industries reporting a decrease in production in November (in order) are: Primary Metals; Nonmetallic Mineral Products; Apparel, Leather, and Allied Products; Chemical Products; Transportation Equipment; Machinery; and Printing and Related Support Activities.
Of the 18 manufacturing industries, seven reported growth in employment in November in the following order: Textile Mills; Paper Products; Petroleum and Coal Products; Primary Metals; Furniture and Related Products; Food, Beverage, and Tobacco Products; and Machinery. The 10 industries reporting a decrease in employment in November (in order) are: Wood Products; Plastics and Rubber Products; Apparel, Leather, and Allied Products; Electrical Equipment, Appliances and Components; Miscellaneous Manufacturing; Computer and Electronic Products; Fabricated Metal Products; Transportation Equipment; Chemical Products; and Printing and Related Support Activities.
The full text version of the Manufacturing ISM Report on Business is available online.
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