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Tuesday, August 20, 2019
HomeNewsEconomyManufacturing Sector Contracts, Activity Hits Lowest Level Since 200

Manufacturing Sector Contracts, Activity Hits Lowest Level Since 200

ISM-manufacturing-index
ISM-manufacturing-index

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.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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