November 2020 Manufacturing ISM Report On Business Reports Continued Rebuilding of Manufacturing

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 grew in November, with the overall economy notching a seventh consecutive month of growth, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

Manufacturing grew in November, as the Manufacturing PMI registered 57.5 percent, 1.8 percentage points lower than the October reading of 59.3 percent, signaling a continued rebuilding of economic activity.

ISM’s New Orders Index registered 65.1 percent in November, a decrease of 2.8 percentage points compared to the 67.9 percent reported in October.  This indicates that new orders grew for the sixth consecutive month.

The Production Index registered 60.8 percent in November, 2.2 percentage points below the October reading of 63 percent, indicating growth for the sixth consecutive month and the fifth consecutive month above 60 percent.

ISM’s Employment Index registered 48.4 percent in November, 4.8 percentage points lower than the October reading of 53.2 percent, thus moving back into contraction territory.

The delivery performance of suppliers to manufacturing organizations was slower in November, as the Supplier Deliveries Index registered 61.7 percent.  This is 1.2 percentage points higher than the 60.5 percent reported in October.

The Inventories Index registered 51.2 percent in November, 0.7 percentage point lower than the 51.9 percent reported for October.  Inventories grew for a second consecutive month after three months of contraction.

ISM’s Backlog of Orders Index registered 56.9 percent in November, a 1.2-percentage point increase compared to the 55.7 percent reported in October, indicating order backlogs expanded for the fifth consecutive month.

Of the 18 manufacturing industries, 16 reported growth in November, in the following order: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Textile Mills; Wood Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Plastics & Rubber Products; Primary Metals; Chemical Products; Machinery; Computer & Electronic Products; Paper Products; Miscellaneous Manufacturing; Transportation Equipment; Furniture & Related Products; and Food, Beverage & Tobacco Products.  The two industries reporting contraction in November are: Printing & Related Support Activities; and Petroleum & Coal Products.