TEMPE, AZ – Economic activity in the manufacturing sector expanded in November for the 16th consecutive month, says the Institute for Supply Management. The PMI dropped 0.3 percentage points to 56.6%.

A reading above 50% indicates the manufacturing economy is generally expanding.

New orders fell 2.3 points to 56.6%, while production decreased 7.7 points to 55%. Inventories were up 2.8 percentage points to 56.7%, and customer inventories grew 1.5 points to 45.5%. Backlogs were 46%, flat with October.

“The manufacturing sector grew during November, with both new orders and production continuing to expand. With the PMI at 56.6%, November's rate of growth is the second fastest in the last six months. Exports and imports continue to support expansion in the sector. Prices moderated slightly during the month, but comments from the respondents express concerns with regard to pricing pressures. The list of commodities in short supply increased, though short supply items are not yet posing significant problems. Manufacturing continues to benefit from the recovery in autos, but those industries reliant upon housing continue to struggle,” said ISM spokesperson Norbert J. Ore.

The overall economy grew for the 19th consecutive month, says the firm.

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