Economic activity in the U.,S. manufacturing sector failed to grow in November for the fourth consecutive month, and the overall economy contracted for the second consecutive month, according to the latest Manufacturing ISM Report On Business. The report is a near-term economic barometer that is reviewed regularly by top government agencies and economic and business leaders for its information regarding the manufacturing sector of the U.S. economy.
"When comparing November to October, the PMI indicates a continuing rapid rate of contraction in manufacturing. New orders have contracted for 12 consecutive months, and are at the lowest level since June 1980 when the index registered 24.2%," said Norbert J. Ore, C.P.M., chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee. "Order backlogs have fallen to the lowest level since ISM began tracking the Backlog of Orders Index in January 1993. The Prices Index at 25.5% indicates that commodity prices continue to decline at a rapid rate. This is the lowest reading for the index since May 1949 when it registered 20.1%."
ISM's New Orders Index registered 27.9% in November, 4.3 percentage points lower than the 32.2%registered in October. This is the lowest reading for this index since June 1980 when the index was at 24.2%. ISM's Production Index decreased to 31.5% in November, a decrease of 2.6 percentage points from the 34.1% reported in October. Manufacturers' inventories contracted in November as the Inventories Index registered 39.1%, which is 5.2 percentage points lower than the 44.3% reported in October.
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