Association News

Manufacturing Contracts in November

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Economic activity in the manufacturing sector contracted in November for the first time since May 2020, ending 29 straight months of growth. The PMI in November was 49 percent, 1.2 percentage points lower than the previous month, the Institute for Supply Management reported.

Other indices also trended downward in November. The New Orders Index was at 47.2 percent, two percentage points below the October figure; the Production Index dropped 0.8 percentage points to 51.5 percent; and the Backlog of Orders Index was at 40 percent, 5.3 percentage points lower than October.

“The U.S. manufacturing sector dipped into contraction, with the Manufacturing PMI at its lowest level since the coronavirus pandemic recovery began. With Business Survey Committee panelists reporting softening new order rates over the previous six months, the November composite index reading reflects companies’ preparing for future lower output,” said Timothy Fiore, chair of the ISM’s Manufacturing Business Survey Committee.

Six manufacturing industries reported growth in November, including primary metals and transportation equipment. Fabricated metal products was among the 12 industries reporting contraction, along with appliances and components.