Dec. 12, 2012
Manufacturing Contracts in November
The November PMI registered 49.5, representing contraction in the manufacturing sector after two straight months of growth, according to the latest Manufacturing ISM Report on Business from the Tempe, Ariz.-based Institute for Supply Management. Readings below 50 indicate contraction.
The PMI dropped 2.2 percentage points from October's 51.7 percent, the fourth month of contraction in the last six. The November PMI is the lowest reading since July 2009, when the PMI was at 49.2 percent.
The New Orders Index dropped to 50.3 percent but still showed growth, while the Production Index increased to 53.7 percent. The Employment Index registered 48.4 percent, a decrease of 3.7 percentage points and the lowest figure since September 2009.
According to Bradley J. Holcomb, chairman of ISM's Manufacturing Business Survey Committee, comments from respondents to ISM's survey generally indicated that the second half of the year showed a slowdown in demand. They also "expressed concern over how and when the fiscal cliff issue will be resolved."