The U.S. manufacturing sector contracted in November for the ninth month in a row, following a two-month expansion preceded by 26 straight months of contraction. The ISM Manufacturing PMI® registered 48.2%, edging down 0.5 percentage points (pp) from 48.7% recorded in October. (A manufacturing PMI® above 50%, over a period of time, generally indicates an expansion of the overall economy.)
The October Manufacturing PMI® indicates the overall economy grew for the 67th straight month after last contracting in April 2020.
The Employment Index registered 44.0% in November, 2.0 pp lower than October’s reading of 46.0%. Prices Index remained in expansion (or “increasing”) territory, registering 58.5% in November, up 0.5 pp compared to the October’s reading of 58.0%, indicating raw materials prices increased for the 14th straight month. New Orders Index contracted for the third consecutive month in November after one month of expansion, registering 47.4%, a decrease of 2.0 pp compared to October’s figure of 49.4%. This reading is below the 12-month moving average (48.9%) for the New Orders Index.
New Export Orders Index contracted in November, registering 46.2%, up 1.7 pp from October’s reading of 44.5%. “Despite a 1.7-percentage-point improvement in the New Export Orders Index, trade frictions continue to weigh on demand. Many panelists still report softer international orders tied to tariffs and ongoing uncertainty around U.S. economic policy,” said Susan Spence, MBA, Chair of the Institute for Supply Management.
Imports Index remained in contraction for the eighth straight month in November after expanding for three straight months. The November figure of 48.9% is an increase of 3.5 pp compared to the reading of 45.4% reported in October. Five industries reported higher imports for the month.
The Inventories Index registered 48.9% in November, up 3.1 pp compared to the reading of 45.8% in October. Of 18 manufacturing industries, five reported higher inventories in October.
