The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management (ISM), the largest supply management organization in the world, as well as one of the most respected. Economic activity in the manufacturing sector expanded in November, and the overall economy grew for the 115th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.
Manufacturing expanded in November, as the PMI registered 59.3 percent, an increase of 1.6 percentage points from the October reading of 57.7 percent. This indicates growth in manufacturing for the 27th consecutive month, led by strong new orders, production output and continued slowing supplier delivery performance.
ISM’s New Orders Index registered 62.1 percent in November, which is an increase of 4.7 percentage points when compared to the 57.4 percent reported for October, indicating growth in new orders for the 35th consecutive month.
ISM’s Production Index registered 60.6 percent in November, which is an increase of 0.7 percentage point when compared to the 59.9 percent reported for October, indicating growth in production for the 27th consecutive month.
ISM’s Employment Index registered 58.4 percent in November, an increase of 1.6 percentage points when compared to the October reading of 56.8 percent. This indicates growth in employment in November for the 26th consecutive month.
The delivery performance of suppliers to manufacturing organizations slowed in November, as the Supplier Deliveries Index registered 62.5 percent. This is 1.3 percentage points lower than the 63.8 percent reported for October, making it the 26th straight month of slowing supplier deliveries.
The Inventories Index registered 52.9 percent in November, an increase of 2.2 percentage points from the 50.7 percent reported for October, showing inventories expanded for the 11th consecutive month.
The ISM Prices Index registered 60.7 percent in November, a decrease of 10.9 percentage points from the October reading of 71.6 percent, indicating an increase in raw materials prices for the 33rd consecutive month.
ISM’s Backlog of Orders Index registered 56.4 percent in November, which is 0.6 percentage point higher than the 55.8 percent reported in October, indicating growth in order backlogs for the 22nd consecutive month.
Of the 18 manufacturing industries, 13 reported growth in November, in the following order: Computer & Electronic Products; Plastics & Rubber Products; Paper Products; Textile Mills; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Machinery; Transportation Equipment; Chemical Products; Food, Beverage & Tobacco Products; Apparel, Leather & Allied Products; Furniture & Related Products; and Petroleum & Coal Products. The three industries reporting contraction in November are: Printing & Related Support Activities; Nonmetallic Mineral Products; and Primary Metals.