November 2022 Manufacturing ISM Report On Business Reports the U.S. Manufacturing Sector Contracted in November

The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management Manufacturing ISM Report (ISM), the largest supply management organization in the world, as well as one of the most respected. Economic activity in the manufacturing sector contracted in November for the first time since May 2020 after 29 consecutive months of growth, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

The U.S. manufacturing sector contracted in November, as the Manufacturing PMI registered 49 percent, 1.2 percentage points below the reading of 50.2 percent recorded in October. After five months of flat or marginally positive change, the decrease last month took the Manufacturing PMI into contraction.

ISM’s New Orders Index contracted for the third consecutive month in November, registering 47.2 percent, a decrease of 2 percentage points compared to the 49.2 percent reported in October.

The Production Index registered 51.5 percent in November, 0.8 percentage point lower than the October reading of 52.3 percent, indicating growth for the 30th consecutive month.

ISM’s Employment Index registered 48.4 percent in November, 1.6 percentage points lower than the October reading of 50 percent. The index indicated employment contracted after being unchanged for one month.

The delivery performance of suppliers to manufacturing organizations was faster for a second straight month in November, as the Supplier Deliveries Index registered 47.2 percent, 0.4 percentage point higher than the 46.8 percent reported in October.

The Inventories Index registered 50.9 percent in November, 1.6 percentage points lower than the 52.5 percent reported for October. Manufacturing inventories expanded at a slower rate compared to October.

ISM’s Backlog of Orders Index registered 40 percent in November, a 5.3-percentage point decrease compared to October’s reading of 45.3 percent, indicating order backlogs contracted for the second consecutive month after a 27-month period of expansion.

Six manufacturing industries reported growth in November, in the following order: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Primary Metals; Miscellaneous Manufacturing; Petroleum & Coal Products; and Transportation Equipment. The 12 industries reporting contraction in November, in the following order, are: Printing & Related Support Activities; Wood Products; Paper Products; Textile Mills; Fabricated Metal Products; Furniture & Related Products; Chemical Products; Plastics & Rubber Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Machinery; and Electrical Equipment, Appliances & Components.