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
|New Orders||48.9||52.9||-4.0||Contracting||From Growing||1|
|Customers’ Inventories||50.5||51.0||-0.5||Too High||Slower||4|
|Backlog of Orders||43.0||42.5||+0.5||Contracting||Slower||6|
|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.