TEMPE, AZ -- The manufacturing sector failed to grow in November for the first time in 42 months despite gains in the broader economy. Computer and electronic products was one of eight industries reporting growth in November.

The monthly Institute for Supply Management report, issued today, showed November manufacturing activity fell to its lowest level since April 2003, as the PMI indicator fell to 49.5%. New orders and production both slumped.

The silver lining, said ISM spokesman Norbert Ore was new export order growth, which "continued as the weaker dollar continues to fuel that segment.

The PMI fell 1.7 points from October, the lowest reading since closing at 46.5% in April 2003. A reading above 50% indicates that the manufacturing economy is generally expanding.

The overall economy's PMI was 49.5%, well above the 42% benchmark that indicates expansion.

"The past relationship between the PMI and the overall economy indicates that the average PMI for January through November corresponds to a 4.1% increase in real gross domestic product," Ore said.

The November PMI annualized corresponds to a 2.4% increase in real GDP.