The manufacturing sector contracted in November for the first time in 36 months, while the overall economy grew, according to supply executives in the latest Manufacturing ISM Report on Business.
The November PMI was 48.6 percent, a decrease of 1.5 percentage points from the October reading. The New Orders Index registered 48.9 percent, a decrease of 4 percentage points. The Production Index registered 49.2 percent, 3.7 percentage points below the October reading. The Employment Index registered 51.3 percent, 3.7 percentage points above the October reading.
A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
Of the 18 manufacturing industries, five are reporting growth in November in the following order: Printing & Related Support Activities; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; and Transportation Equipment.
The 10 industries reporting contraction in November – listed in order – are: Apparel, Leather & Allied Products; Plastics & Rubber Products; Machinery; Primary Metals; Petroleum & Coal Products; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Furniture & Related Products; Fabricated Metal Products; and Chemical Products.
For more information, visit www.ism.ws.
