Sections: Economy

Manufacturing Sector Contracts, Activity Hits Lowest Level Since 200

The Institute for Supply Management’s Manufacturing Report On Business Survey. (Photo: REUTERS)

The Institute for Supply Management’s gauge of factory activity fell to 48.6 in November from 50.1 in October, well below economists’ expectations for a reading of 505. The Manufacturing Business Survey reading was the lowest since June 2009, easily falling below 50 where it hasn’t been since November of 2012.

“Ten out of 18 manufacturing industries reported contraction in November, with lower new orders, production and raw materials inventories accounting for the overall softness in November,” said Bradley J. Holcomb, chair of the Institute for Supply Management Manufacturing Business Survey Committee.

Readings above 50 point to expansion, while those below indicate contraction.

MANUFACTURING AT A GLANCE NOVEMBER 2015
Index	Series Index Nov	Series Index Oct	Percentage Point Change	Direction	Rate of Change	Trend* (Months)
PMI^®	48.6	50.1	-1.5	Contracting	From Growing	1
New Orders	48.9	52.9	-4.0	Contracting	From Growing	1
Production	49.2	52.9	-3.7	Contracting	From Growing	1
Employment	51.3	47.6	+3.7	Growing	From Contracting	1
Supplier Deliveries	50.6	50.4	+0.2	Slowing	Faster	4
Inventories	43.0	46.5	-3.5	Contracting	Faster	5
Customers’ Inventories	50.5	51.0	-0.5	Too High	Slower	4
Prices	35.5	39.0	-3.5	Decreasing	Faster	13
Backlog of Orders	43.0	42.5	+0.5	Contracting	Slower	6
Exports	47.5	47.5	0.0	Contracting	Same	6
Imports	49.0	47.0	+2.0	Contracting	Slower	2
OVERALL ECONOMY				Growing	Slower	78
Manufacturing Sector				Contracting	From Growing	1

Manufacturing ISM^® Report On Business^® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries indexes.

*Number of months moving in current direction.

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PPD Business Staff

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