Economic activity in the manufacturing sector expanded in November for the 28th consecutive month, and the overall economy grew for the 30th consecutive month, according to the Manufacturing ISM Report On Business, issued Dec. 1 by the Institute for Supply Management (ISM). The report is based on data compiled from purchasing and supply executives nationwide.
The PMI registered 52.7 percent, an increase of 1.9 percentage points from October”s reading of 50.8 percent, indicating expansion in the manufacturing sector once again.
The New Orders Index increased 4.3 percentage points from October to 56.7 percent, reflecting the second month of growth after three months of contraction. While the Prices Index, at 45 percent, increased 4 percentage points from the October reading of 41 percent, prices of raw materials continued to decrease (registering below 50 percent) for the second consecutive month.
“Respondents cite continuing concerns about the general economic environment, government regulations, and European financial conditions, but are cautiously more optimistic about the next few months based on lower raw materials pricing and favorable levels of new orders, ” according to Bradley J. Holcomb, chair of the ISM Manufacturing Business Survey Committee, in a prepared statement.
Of the 18 manufacturing industries cited in the report, eight are reporting growth in November, in the following order: Wood Products; Textile Mills; Petroleum & Coal Products; Primary Metals; Food, Beverage & Tobacco Products; Computer & Electronic Products; Apparel, Leather & Allied Products; and Paper Products.
The nine industries reporting contraction in November, in order, are: Miscellaneous Manufacturing; Nonmetallic Mineral Products; Plastics & Rubber Products; Printing & Related Support Activities; Electrical Equipment, Appliances & Components; Chemical Products; Fabricated Metal Products; Transportation Equipment; and Machinery.
To read the full ISM news article on this report, click here.