ISM Manufacturing Index (PMI) Posts Another Strong Month in November

The Institute for Supply Management (ISM) said the manufacturing index (PMI) registered 58.2%, a slight decrease in an otherwise extremely strong report. The headline number was weighed down by a welcomed improvement to delivery times in November, which were backed up during hurricane season.

• The New Orders Index registered 64 percent, an increase of 0.6 percentage point from the October reading of 63.4 percent.
• The Production Index registered 63.9 percent, a 2.9 percentage point increase compared to the October reading of 61 percent.
• The Employment Index registered 59.7 percent, a decrease of 0.1 percentage point from the October reading of 59.8 percent.
• The Supplier Deliveries Index registered 56.5 percent, a 4.9 percentage point decrease from the October reading of 61.4 percent.
• The Inventories Index registered 47 percent, a decrease of 1 percentage point from the October reading of 48 percent.
• The Prices Index registered 65.5 percent in November, a 3 percentage point decrease from the October level of 68.5, indicating higher raw materials prices for the 21st consecutive month.

“Comments from the panel reflect expanding business conditions, with New Orders and Production leading gains, employment expanding at a slower rate, order backlogs stable and expanding, and export orders all continuing to grow in November,” said Timothy R. Fiore, Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee. “Supplier deliveries continued to slow (improving), but at slower rates, and inventories continued to contract during the period.”

Of the 18 manufacturing industries, 14 reported growth in November, in the following order: Paper Products; Machinery; Transportation Equipment; Computer & Electronic Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Printing & Related Support Activities; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Chemical Products; Furniture & Related Products; Fabricated Metal Products; Miscellaneous Manufacturing; and Primary Metals. Two industries reported contraction during the period: Wood Products; and Petroleum & Coal Products.

“Price increases continued, but at a slower rate. The Customers’ Inventories Index improved but remains at low levels,” Mr. Fiore said.