ISM Manufacturing Index (PMI) Easily Beats Forecast for November

The Institute for Supply Management (ISM) manufacturing index (PMI) came in at 59.3% in November, easily beating the 57.2% consensus forecast. The forecasts range was 56.0% to 58.3% and the headline is an increase of 1.6 percentage points from the October reading of 57.7%.

“Comments from the panel reflect continued expanding business strength,” Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, said. “Demand remains strong, with the New Orders Index rebounding to above 60 percent, the Customers’ Inventories Index declining and remaining too low, and the Backlog of Orders Index steady.”

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The New Orders Index came in at 62.1%, an increase of 4.7 percentage points from the October reading of 57.4%, while the Production Index registered 60.6%, a 0.7 percentage-point increase compared to the October reading of 59.9%.

“The expansion of new export orders was stable and at a recent historical low,” Mr. Fiore added. “However, four of six major industries contributed, down from five in October. Prices pressure continues, but at notably lower levels than in prior periods.”

“The manufacturing community continues to expand, with November adding positively to the three-month rolling PMI® average.”

The Employment Index posted at 58.4%, an increase of 1.6 percentage points from the October reading of 56.8 percent. The Supplier Deliveries Index came in at 62.5%, a 1.3-percentage point decrease from the October reading of 63.8%.

The Inventories Index registered 52.9%, an increase of 2.2 percentage points from the October reading of 50.7%. The Prices Index came in at 60.7%, a 10.9-percentage point decline and indicative of increased raw materials prices for the 33rd month in a row.